Forex Trading Library

DXY: Has Cycle Correction IV Ended?

0 1,991

The current DXY structure hints at a bearish cycle impulse. The corrective wave IV is partially complete, which took the form of a primary double zigzag.

In the last section of the chart, we see the formation of the fifth wave. This could take the form of an impulse ①-②-③-④-⑤ of the primary degree.

Bearish impulse wave ① and a bullish correction wave ② have already ended.

In the next coming trading days, prices could see a decline in the wave ③ to 88.26. At that level, wave ③ will be at 123.6% of first primary wave.

dxy elliott

An alternative scenario shows that the cycle correction IV is not yet complete. In this version, it takes the form of a triple zigzag, rather than a double one.

Most likely, the first four parts of this zigzag are already fully complete. Therefore, in the short term, we can expect a price rise and the development of the primary actionary wave Ⓩ to the 94.42 area.

At that level, waves Ⓩ and Ⓨ will tend to be equal.

Got your risk management sorted? Open your account now!

Leave A Reply

Your email address will not be published.