DXY seems to be forming a bearish wave IV of a cycle degree, consisting of primary corrective sub-waves Ⓐ-Ⓑ-Ⓒ.
Wave Ⓐ is a 5-wave impulse, and wave Ⓑ is an (A)-(B)-(C)-(D)-(E) triangle. Impulse wave Ⓒ is currently under development.
In the short term, we can expect prices to rise near 97.35 in wave (4). At that level, the pair will be at 38.2% of the Fibonacci extension of wave (3).
Afterward, the decline in the 5th wave could take us to wave ④’s low.
An alternative scenario suggests that the cycle degree wave IV is taking the form of a triple zigzag Ⓦ-Ⓧ-Ⓨ-Ⓧ-Ⓩ.
Thus, in the short term, we can expect prices to rise in wave Ⓧ near 98.71. At that level, wave Ⓧ would be at 61.8% of wave Ⓨ.
This could be followed by a bearish leg in wave Ⓩ near 135.80 and perhaps slightly below wave Ⓨ.
