The formation of the DXY index suggests the development of a large triple zigzag, consisting of cycle waves w-x-y-x-z.
On the 1H timeframe, we can see the second half of a large average wave y. This has the form of a double zigzag Ⓦ-Ⓧ-Ⓨ of the primary degree. Apparently, this double zigzag is coming to an end. The intermediate wave (Y), which has the form of a triple zigzag, can end around the level of 97.03. At that level, wave Z will be at 61.8% of wave Y.
After reaching the level of 97.07, there is a possibility that the bears may re-target the minimum of 91.94 within the cycle wave x.
Let’s consider an alternative scenario in which the cycle wave y will take longer to form.
Perhaps its final primary wave Ⓨ will be more complex in its structure. In fact, it may take the form, of a triple zigzag consisting of intermediate sub-waves (W)-(X)-(Y)-(X)-(Z).
In that case, the market may soon complete the decline in a small reactionary intervening wave (X) in the form of a double zigzag W-X-Y. And then the bulls can push the price to the level of 99.86 in the intermediate wave (Z).
At the specified level, wave (Z) will be at 123.6% of actionary wave (Y).
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