12 Oct

DXY Cycle Correction Nears Completion Level

October 12, 2021

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 Ⓦ.

Free Reports:

Get our Weekly Commitment of Traders Reports - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.





Sign Up for Our Stock Market Newsletter – Get updated on News, Charts & Rankings of Public Companies when you join our Stocks Newsletter




DXY

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.

Orbex-LogoArticle by Orbex

Orbex is a fully licensed broker that was established in 2011. Founded with a mission to serve its traders responsibly and provides traders with access to the world’s largest and most liquid financial markets. www.orbex.com


investmacro products link




Financial News Forex and Currency News