DXY: Upside Substructure Looks Impulsive

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The current DXY structure suggests we are on a bullish 5-wave impulse that consists of waves I-II-III-IV-V of a cycle degree.

At the time of writing, a bearish zigzag move offered a bounce where prices were seen retracting away from primary wave ④. This might be the beginning of cycle wave V. The primary impulse ⑤ is also in the process of structuring into wave V.

With the intermediate impulse (3) underway we can expect to see bulls to continue pushing prices higher.  Any level above 102.99. That is, above the previous swing high can complete the 5-wave move.

The upside formation, however, can be also seen as a correction due to its somewhat limited upside momentum below minor A. This scenario sees wave ④ incomplete and further declines can be expected in a complex 3-wave correction pattern.

With a double zigzag coming into play already down to wave (Y), we can expect this correction to continue into a triple zigzag. This would consist of intermediate sub-waves (W)-(X)-(Y)-(X)-(Z).

Once the bullish intervening wave (X) is done anywhere above wave (A)’s top, we can expect a decline in wave (Z). This can end anywhere below the previous low at 98.24, which was formed by wave (Y).

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