DXY ended wave IV of a bullish cycle pattern in a simple Ⓐ-Ⓑ-Ⓒ zigzag. Wave Ⓐ is a zigzag, wave Ⓑ is a triangle, and wave Ⓒ is a 5-wave bearish impulse.
At the time of writing, DXY has begun to reverse up in the final wave V.
We expect the 5-wave primary-degree upside to reach at least the 102.95 area. This is the previous high formed by cycle wave III.
An alternative scenario hints at a cycle-degree standard zigzag in a-b-c.
Cycle wave b, which is under development, resembles a triple Ⓦ-Ⓧ-Ⓨ-Ⓧ-Ⓩ zigzag. Wave (B) of Ⓩ is currently under construction.
In the near future, we can expect an upside move up to the 95.17 area. At that level, correction wave (B) will be equal to 50% of impulse (A).
Then, we could expect prices to fall in wave (C) near the 91.70 area. At that level, primary wave Ⓩ will be at 123.6% of wave Ⓨ.
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