Impact Of Elliott Wave Theory On Trading Strategies
The analysis concludes that $GOOGL remains supported against June 2025 lows, indicating that traders should consider buying the dips. Monitoring the $260 – 270 zone is advised as the next target. Applying Elliott Wave Theory enables traders to better anticipate future market moves and improve risk management in volatile conditions.
Silver has rallied due to safe-haven demand amidst US-China tensions and Federal Reserve rate cut speculation. The GBP/USD has risen above 1.3400 due to US dollar pressure, while Gold remains steady at $4,200 per ounce. Bitcoin struggles to extend its rebound, falling under $112,500 amid macroeconomic headwinds. In the interim, Lido DAO maintains its recovery above $1.00 following the Lido V3 testnet launch.
Positioning For A Declining Dollar
Given the Federal Reserve’s dovish tilt and renewed US-China trade tensions, we see continued weakness for the US Dollar. Futures markets are now pricing in over an 80% probability of a rate cut by the end of 2025, especially after the September CPI report showed core inflation moderating. This environment favors strategies that benefit from a declining dollar.
We should look to position for further gains in pairs like EUR/USD and GBP/USD. With the Euro pushing past 1.16, a key resistance level not seen since early 2022, buying call options or bull call spreads seems appropriate. Similarly, with Sterling above 1.34, we see further upside and would consider similar bullish derivative strategies.
In equities, Alphabet ($GOOGL) appears to have found support in the $223-$234 zone, presenting a tactical buying opportunity. The Elliott Wave structure suggests the corrective phase is over and a move toward the $260-$270 area could be next. We believe selling cash-secured puts at current support levels or buying call options for the coming months is a sound approach.
Gold’s strength around $4,200 per ounce reflects significant safe-haven demand that we expect to persist. This price level marks a substantial rally from the consolidation we saw back in 2023, and recent data on ETF inflows confirms strong institutional interest. We should maintain a long bias through futures or by purchasing call options on gold.
The combination of a potential US government shutdown and unresolved trade conflicts is creating significant uncertainty. This backdrop suggests market volatility may increase in the coming weeks. Therefore, we should consider adding hedges to our portfolio, such as buying VIX futures or VIX call options, to protect against any sudden downturns.