The structure of the DXY index hints at the development of a large triple zigzag w-x-y-x-z of the cycle degree.
Most likely, a cycle actionary wave z is currently under construction. The internal structure of the wave z suggests a triple Ⓦ-Ⓧ-Ⓨ-Ⓧ-Ⓩ zigzag. The final primary wave Ⓩ is still developing. It could take the form of a double zigzag (W)-(X)-(Y) of the intermediate degree.
Bulls can push the price up again to the maximum of 109.34 at impulse iii. At that level, wave z will be at 161.8% of the previous actionary wave y.
In an alternative scenario, the cycle actionary wave y was longer. At the time of writing, it had ended and was a primary triple zigzag.
Thus, in the near future prices will move lower, building a cycle intervening wave x. The intervening wave x is similar to the primary zigzag Ⓐ-Ⓑ-Ⓒ.
It is possible that the price will fall to 104.66, as shown on the chart. At that level, wave x will be at 23.6% along the Fibonacci lines of wave y.
Trading the news requires access to extensive market research – and that’s what we do best. Open your Orbex account now.
The post DXY Large Triple Zigzag Reaches New Highs! appeared first on Orbex Forex Trading Blog.