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Dow Jones Elliott Wave view in short-term cycles suggests that the rally to 24827 on 4/17/2018 high ended Intermediate wave (X). Below from there, Intermediate wave (Y) remains in progress as overlapping structure suggesting that the move lower is corrective in nature. The move lower from 24827 peak is proposed to be unfolding as an Elliott Wave Double three structure.

Down from 24835 high, Minute wave ((w)) ended at 23786 and Minute wave ((x)) ended at 24461. The internals of Minute wave ((w)) unfolded as a Zigzag Elliott Wave structure where Minutte wave (a) of ((w)) ended at 24290, Minutte wave (b) of ((w)) ended at 24600, and Minutte wave (c) of ((w)) ended at 23786. The index then made a bounce higher & finished correcting cycle from 4/17 high (24827) in Minute wave ((x)) bounce at 24461 as a Flat structure.

After ending Minute wave ((x)) at 24461, the Index turned lower and it has managed to break below the previous wave ((w)) low (23786), adding conviction that the next leg lower in Minute wave ((y)) has already started. Down from 24461, Minutte wave (w) of ((y)) ended at yesterday’s low 23753 and Minutte wave (x) of ((y)) may have ended at last high 24115. A break above 24415 from here means that Index is still within Minutte wave (x) of ((y)) and doesn’t change the overall view as far as the rally stays below 24461. Near-term, as far as bounces fail below 24461 high and more importantly below the 24835 high, expect Index to resume the next leg lower towards 23416 -23170 area next before a bounce in minimum 3 swings takes place. We don’t like selling it.

Dow Jones Elliott Wave 1 Hour Chart

For the 24 hours to 23:00 GMT, the AUD declined 0.57% against the USD and closed at 0.7486.

LME Copper prices declined 0.08% or $5.5/MT to $6777.5/MT. Aluminium prices rose 1.53% or $34.0/MT to $2258.0/MT.

In the Asian session, at GMT0300, the pair is trading at 0.7500, with the AUD trading 0.19% higher against the USD from yesterday’s close.

On the macro front, in China, Australia’s largest trading partner, the Caixin/Markit manufacturing PMI recorded an unexpected rise to a level of 51.1 in April, compared to a level of 51.0 in the previous month, while markets were anticipating for a drop to a level of 50.9.

The pair is expected to find support at 0.7466, and a fall through could take it to the next support level of 0.7433. The pair is expected to find its first resistance at 0.754, and a rise through could take it to the next resistance level of 0.7581.

Looking forward, the release of Australia’s AiG performance of services index for April as well as trade balance and building approvals data, both for March, will be eyed by market participants.

The currency pair is showing convergence with its 20 Hr moving average and trading below its 50 Hr moving average.

For the 24 hours to 23:00 GMT, the EUR declined 0.76% against the USD and closed at 1.1989.

Macroeconomic data released in the US indicated that the ISM manufacturing activity index declined more-than-anticipated to a level of 57.3 in April, hitting a 9-month low level and pointing towards some moderation in the nation's economic activity. In the previous month, the index had registered a reading of 59.3, while market participants had expected for a drop to a level of 58.5. On the other hand, the nation's final Markit manufacturing PMI advanced to a level of 56.5 in April, meeting the preliminary print. In the prior month, the PMI had registered a reading of 55.6.

In other economic news, the nation's construction spending unexpectedly retreated 1.7% on a monthly basis in March, dropping by the most in 11 months. Construction spending had registered a revised gain of 1.0% in the previous month, while markets were anticipating for an advance of 0.5%.

In the Asian session, at GMT0300, the pair is trading at 1.2006, with the EUR trading 0.14% higher against the USD from yesterday's close.

The pair is expected to find support at 1.1966, and a fall through could take it to the next support level of 1.1926. The pair is expected to find its first resistance at 1.2062, and a rise through could take it to the next resistance level of 1.2118.

Going ahead, market participants would keep a close watch on the Euro-zone's flash 1Q GDP numbers as well as unemployment rate data for March, both due to release in a few hours. Also, the release of final Markit manufacturing PMI for April across the Euro-zone will be on investors' radar. Later in the day, traders would focus on the US Federal Reserve's (Fed) monetary policy meeting for clues on the central bank's near-term monetary policy intentions. Moreover, the release of US ADP employment change data for April, will keep investors on their toes.

The currency pair is showing convergence with its 20 Hr moving average and trading below its 50 Hr moving average.

For the 24 hours to 23:00 GMT, the GBP declined 1.16% against the USD and closed at 1.3609, after Britain's manufacturing sector showed a poor performance in April.

Data revealed that UK's Markit manufacturing PMI slid to a 17-month low level of 53.9 in April, casting fresh concerns over the health of the nation's economy. The PMI had recorded a revised level of 54.9 in the prior month, while markets were expecting for a fall to a level of 54.8.

Other data revealed that the nation's mortgage approvals fell more-than-estimated to a level of 62.9K in March, hitting a 3-month low level and reinforcing a picture of sluggish property market. Mortgage approvals had recorded a revised reading of 63.8K in the previous month, while markets had anticipated for a fall to a level of 63.0K. Also, the nation's net consumer credit grew £0.3 billion in March, rising at its weakest pace since November 2012. Market participants had envisaged net consumer credit to rise by £1.4 billion, after registering a revised gain of £1.7 billion in the prior month.

In the Asian session, at GMT0300, the pair is trading at 1.3613, with the GBP trading slightly higher against the USD from yesterday's close.

The pair is expected to find support at 1.3546, and a fall through could take it to the next support level of 1.3478. The pair is expected to find its first resistance at 1.3723, and a rise through could take it to the next resistance level of 1.3832.

Moving ahead, traders would closely monitor Britain's Markit construction PMI for April, slated to release in a few hours.

The currency pair is trading below its 20 Hr and 50 Hr moving averages.

For the 24 hours to 23:00 GMT, the USD rose 0.59% against the JPY and closed at 109.91.

In the Asian session, at GMT0300, the pair is trading at 109.69, with the USD trading 0.20% lower against the JPY from yesterday's close.

Data released overnight revealed that Japan's Nikkei services PMI climbed to a level of 52.5 in April, notching a 6-month high level and compared to a level of 50.9 in the previous month.

The pair is expected to find support at 109.36, and a fall through could take it to the next support level of 109.03. The pair is expected to find its first resistance at 109.97, and a rise through could take it to the next resistance level of 110.25.

The currency pair is showing convergence with its 20 Hr moving average and trading above its 50 Hr moving average.

For the 24 hours to 23:00 GMT, the USD rose 0.6% against the CHF and closed at 0.9967.

In the Asian session, at GMT0300, the pair is trading at 0.9958, with the USD trading 0.09% lower against the CHF from yesterday’s close.

The pair is expected to find support at 0.9924, and a fall through could take it to the next support level of 0.9890. The pair is expected to find its first resistance at 0.9981, and a rise through could take it to the next resistance level of 1.0004.

Ahead in the day, investors would direct their attention to Switzerland’s manufacturing PMI and the SECO consumer confidence index, both for April coupled with real retail sales data for March.

The currency pair is showing convergence with its 20 Hr moving average and trading above its 50 Hr moving average.

For the 24 hours to 23:00 GMT, the USD rose 0.07% against the CAD and closed at 1.2847.

On the economic front, Canada's gross domestic product (GDP) advanced 0.4% on a monthly basis in February, beating market consensus for a rise of 0.3%. In the prior month, the GDP had fallen 0.1%.

On the other hand, the nation's Markit manufacturing PMI fell to a level of 55.5 in April, compared to a reading of 55.7 in the previous month.

In the Asian session, at GMT0300, the pair is trading at 1.283, with the USD trading 0.13% lower against the CAD from yesterday's close.

The pair is expected to find support at 1.2796, and a fall through could take it to the next support level of 1.2762. The pair is expected to find its first resistance at 1.2889, and a rise through could take it to the next resistance level of 1.2948.

The currency pair is trading below its 20 Hr and 50 Hr moving averages.

For the 24 hours to 23:00 GMT, Gold declined 0.84% against the USD and closed at USD1305.40 per ounce, as a broad strength in the US Dollar decreased demand for the precious yellow metal.

In the Asian session, at GMT0300, the pair is trading at 1310.00, with gold trading 0.35% higher against the USD from yesterday’s close.

The pair is expected to find support at 1303.60, and a fall through could take it to the next support level of 1297.20. The pair is expected to find its first resistance at 1315.10, and a rise through could take it to the next resistance level of 1320.20.

The yellow metal is trading between its 20 Hr and 50 Hr moving averages.

For the 24 hours to 23:00 GMT, Silver declined 0.98% against the USD and closed at USD16.20 per ounce, tracking losses in gold prices.

In the Asian session, at GMT0300, the pair is trading at 16.33, with silver trading 0.83% higher against the USD from yesterday’s close.

The pair is expected to find support at 16.15, and a fall through could take it to the next support level of 15.96. The pair is expected to find its first resistance at 16.44, and a rise through could take it to the next resistance level of 16.55.

The white metal is trading above its 20 Hr moving average and showing convergence with its 50 Hr moving average.

For the 24 hours to 23:00 GMT, Crude Oil declined 1.50% against the USD and closed at USD67.44 per barrel, after the American Petroleum Institute (API) reported that US crude oil inventories rose by 3.4 million barrels to 432.6 million barrels in the week ended 27 March.

In the Asian session, at GMT0300, the pair is trading at 67.46, with oil trading marginally higher against the USD from yesterday's close, amid concerns that the US might re-impose sanctions on Iran.

The pair is expected to find support at 66.57, and a fall through could take it to the next support level of 65.69. The pair is expected to find its first resistance at 68.62, and a rise through could take it to the next resistance level of 69.79.

Crude oil is trading below its 20 Hr and 50 Hr moving averages.