By Orbex
The current DXY structure hints at the development of a large triple zigzag w-x-y-x-z of the cycle degree.
The intervening wave x ended, in a triple Ⓦ-Ⓧ-Ⓨ-Ⓧ-Ⓩ zigzag of the primary degree formation.
At the time of writing, a cycle actionary wave z is under construction. The internal structure of the wave z suggests a double Ⓦ-Ⓧ-Ⓨ zigzag. The first two parts of the double zigzag look fully complete. The primary wave Ⓨ is still in the process of development. It could take the form of a double zigzag (W)-(X)-(Y) of the intermediate degree.
Bulls can continue to push the price to the level of 101.972. The target is determined using the Fibonacci extension tool. At the specified level, wave z will be at 100% of the previous actionary wave y.
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Alternatively, the cycle actionary wave y was longer than in the main variant and has the form of a primary triple zigzag. At the time of writing, it has ended.
In the near future, the market will continue to move in a downward direction, building a cycle intervening wave x. It will most likely take the form of a primary double zigzag.
Finally, prices could fall to the level of 97.10, where wave x will be at 23.6% of wave y.
Article 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
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