The US dollar remains strong at the start of the week as stocks finished last week in the red, due to a hawkish Fed and Ukraine-Russia conflict. However, it's interesting to see that US notes found some support while the EUR/USD is at the lows despite Emmanuel Macron's victory in the second round of French elections.
Technically, we see EUR/USD coming down to a new low after the recent intraday a-b-c rally, but there can be a new intraday support for the euro this week, especially if US notes would continue to trade above recent lows, possibly even breaking out of a wedge.
The question is who will do the catch-up here? Will US notes turn even lower and EUR/USD fall like a knife, or will more upside in the United States 10-Year note finally cause a low for the EUR/USD? From an Elliott Wave perspective, we see a wedge, with price targeting the lower trendline.
