We have seen the U.S. dollar moving to the upside in the last 12 hours, following the hawkish tone of the FOMC minutes that send the U.S. 10-year Treasury yields rising to 3%. We see 10-year U.S. T-Note prices still in an ending diagonal.
Looking at the monthly chart, we see price trading clearly in a five-wave recovery, from 2008 lows, when a bigger correction had ended. Now Elliot Wave teaches us that after five unfolded waves, a new three-wave setback can occur. In our case, this could transpire, however, we still believe a minor five-wave rally is still in the making within the final leg of this bullish cycle.