DXY Triple Zigzag Hints At Major Correction

May 13, 2022

By Orbex

The structure of the DXY index hints at the development of a large triple zigzag w-x-y-x-z of the cycle degree.

At the time of writing, a cyclic actionary wave z is under construction. The internal structure of the wave z suggests a triple zigzag Ⓦ-Ⓧ-Ⓨ-Ⓧ-Ⓩ. The primary wave Ⓩ is still in the process of development. It seems to take the form of a double zigzag (W)-(X)-(Y) of the intermediate degree.

Prices can continue to push to 106.58. At that level, wave z will be at 161.8% of previous actionary wave y.


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Now let’s look at an alternative scenario. In the second variant, it is assumed that the cycle actionary wave y was a primary triple zigzag.

If this option is confirmed, then the market will move lower, building a cycle intervening wave x. It will most likely take the form of a primary zigzag Ⓐ-Ⓑ-Ⓒ.

The price could fall to 99.07, as indicated on the chart. At that level, wave x will be at 38.2% 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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