Forex Trading Library

DXY Correction IV a Double Zigzag Or a Flat?

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The DXY index is currently building a cycle trend in the form of a bearish 5-wave impulse.

The first three parts of this impulse have ended, whereas the corrective leg IV is still under construction. Judging by the structure, it is a bullish double zigzag, which now includes an intermediate impulse (C).

We could expect the final leg of the mentioned impulse near 92.09. At that level, actionary sub-waves Ⓦ and Ⓨ of the primary degree will be equal.

Finally, bears will lead the market in a cycle wave V below the low of 89.22, marked by impulse III.


An alternative scenario hints at the cycle correction IV having a horizontal flatⒶ-Ⓑ-Ⓒ structure.

In the next coming trading days, we expect the development of a bearish wave V of the cycle degree, which can be completed near the 87.27 area.

At that level, wave V will be at 38.2% of impulse III.

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