The current formation of the DXY index hints at the development of a large triple w-x-y-x-z zigzag of the cycle degree.
The intervening wave x ended, which is a triple Ⓦ-Ⓧ-Ⓨ-Ⓧ-Ⓩ zigzag of the primary degree.
At the time of writing, a cycle actionary wave z is under construction. The internal structure of the wave z also suggests a triple zigzag Ⓦ-Ⓧ-Ⓨ-Ⓧ-Ⓩ. The first four parts of the triple zigzag look fully complete. The primary wave Ⓩ is still in the process of development. It seems to take the form of a double zigzag (W)-(X)-(Y) of the intermediate degree.
Bulls can continue to push the price to the level of 101.989. At the specified level, wave z will be at 100% of the previous actionary wave y.
Let’s consider an alternative scenario. In the second variant, the cycle actionary wave y was longer than in the main variant and has the form of a primary triple zigzag.
Therefore, in the near future the market will move in a downward direction, building a cycle intervening wave x. It will most likely take the form of a primary zigzag Ⓐ-Ⓑ-Ⓒ.
It is possible that the price will fall to the level of 96.682, as indicated on the chart. At that level, wave x will be at 38.2% along the Fibonacci lines of wave y.
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