How Elliott Wave Theory Affects Trading Strategies

The analysis shows that $GOOGL has support against its lows from June 2025, suggesting that traders should think about buying during price dips. It’s wise to keep an eye on the $260 – 270 range as the next target. Using Elliott Wave Theory helps traders predict future market movements and manage risk during volatile times. Silver prices have increased due to safe-haven demand amid tensions between the US and China, along with speculation about Federal Reserve rate cuts. The GBP/USD has risen above 1.3400 because of pressure on the US dollar, while Gold remains steady at $4,200 per ounce. Bitcoin is struggling to maintain its rebound, dropping below $112,500 due to macroeconomic challenges. In the meantime, Lido DAO is recovering above $1.00 after the Lido V3 testnet launch.

Preparing for a Weaker Dollar

With the Federal Reserve showing a softer stance and renewed US-China trade tensions, we expect continued weakness in the US Dollar. Futures markets are pricing in an over 80% chance of a rate cut by the end of 2025, especially since the September CPI report indicated slowing core inflation. This situation favors strategies that benefit from a weaker dollar. We should aim for gains in currency pairs like EUR/USD and GBP/USD. With the Euro climbing above 1.16, its highest resistance level since early 2022, buying call options or bull call spreads is a good idea. Likewise, with Sterling above 1.34, there is potential for more upside, and we would consider similar bullish strategies. In the stock market, Alphabet ($GOOGL) seems to have found support in the $223-$234 range, creating a good buying opportunity. The Elliott Wave structure indicates that the corrective phase has ended, with a potential move towards the $260-$270 area next. We suggest selling cash-secured puts at current support levels or buying call options for the upcoming months. Gold’s strength at around $4,200 per ounce shows strong safe-haven demand that we expect to continue. This price represents a significant increase from the 2023 consolidation, and recent ETF inflow data confirms strong interest from institutions. We should keep a bullish stance on gold through futures or by buying call options. The potential for a US government shutdown and ongoing trade disputes is creating considerable uncertainty. This environment suggests that market volatility may rise in the weeks ahead. Therefore, we should think about adding protection to our portfolio, like buying VIX futures or VIX call options, to guard against sudden market drops. Create your live VT Markets account and start trading now.

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