DXY: Bearish Impulse Could Drag the Index Lower

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The current DXY structure hints to a bearish double zigzag. The cycle degree w and y waves consist of primary sub-waves Ⓐ-Ⓑ and Ⓒ, whereas the corrective wave x is a triple zigzag.

Sub-waves Ⓐ and Ⓑ of c are fully completed, whereas wave Ⓒ is still under development.

Since bears seem strong in the final impulse Ⓒ the index could decline down to the 95.75 area.

That target would respect the tenancy of impulse waves А and С being equal.

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A different perspective provides a likely alternative scenario. According to that, the primary wave Ⓑ has not yet been completed.

In this case, the current structure would be a flat correction, where intermediate wave (B) is equal in size to the intermediate wave (A).

We would then expect a 5-wave impulse (C) near 97.83. At that level, all waves would be equal in value, forming a flat pattern.

If bears push well below 96.57, then the alternative scenario would be invalidated.

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