By Orbex
In the long term, the DXY is forming a bearish impulse consisting of five cycle sub-waves.
The chart shows the final part of the deep correction wave IV, which takes the form of a primary double zigzag Ⓦ-Ⓧ-Ⓨ.
The primary wave Ⓨ is currently under development, which is similar to the triple (W)-(X)-(Y)-(X)-(Z) zigzag. Most likely, the first four parts of this figure have ended, whilst the last sub-wave (Z) is still being built.
We can assume that the intermediate wave (Z) will end near 95.54. At that level, wave Ⓨ will be at 161.8% of wave Ⓦ.
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An alternative scenario suggests that the formation of correction wave IV has come to an end. It took the form of a primary triple zigzag Ⓦ-Ⓧ-Ⓨ-Ⓧ-Ⓩ.
The final leg also has a complex internal structure of a triple (W)-(X)-(Y)-(X)-(Z) zigzag.
If this option is confirmed, then a bearish price move will prevail in the market in the next coming trading weeks. A bearish cycle wave V could develop below the level of 89.53.
Article by Orbex
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