The current DXY formation hints to a large bullish 5-wave impulse consisting of sub-waves I-II-III-IV-V of a cycle degree.
Currently, a bullish impulse V of a cycle degree is under construction. It consists of primary sub-waves ①-②-③-④-⑤.
Waves ①-②-③ are completed, whereas primary correction ④, which takes the form of a horizontal contracting triangle (A)-(B)-(C)-(D)-(E), is still being formed. It is likely to complete its correction near 99.05.
Target 99.05 is on the support line drawn through the vertices (A) and (C).
After completion of this correction, the market may grow in the final wave ⑤ above the level of the previous maximum formed by the primary impulse ③. In other words, above 103.02.
However, an alternative scenario may indicate that primary wave ④ is a bearish double zigzag consisting of intermediate sub-waves (W), (X), and (Y).
If this hypothesis is correct, then the formation of a minor wave B has recently been completed. Therefore, in the near future, we could see a decline in the impulse pattern C near 98.00.
At that level, intermediate zigzag (Y) will be at 61.8% of zigzag (W).
