Forex Trading Library

DXY: Bullish Impulse Part of Correction

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The end of the double zigzag w-x-y near 96.35 is interchanged with a standard zigzag a,b,c that is heading reversely to the larger trend.

 At the time of writing, the cycle wave a is still under development. The 5-wave impulse consists of primary waves①-②-③-④ and ⑤.

 The first four waves have already been completed, so, primary wave ⑤ is now expected to end the first part of the correction.

 A potential projection where could reach a top is near 99.18. That is the duplication of wave ③.

dxy

The current structure also hints at an identical impulse a, however, in this case wave ⑤ points to a shorter 5th near the 98.72 high instead.

This projection sees primary impulse ⑤ ending at the 78.6% Fibonacci of primary impulse ③. The 78.6% proportion is often found in bullish impulses.

After the completion of wave a, we could get a correction wave b near 97.26. At that level, a pullback near the golden ratio is assumed.

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