Forex Trading Library

DXY Simple Zigzag Sends Prices Lower

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The internal structure of the DXY index shows the completion of the global corrective trend. This took the form of a triple zigzag consisting of cycle waves w-x-y-x-z.

It is possible that the market has begun forming the initial part of a new bearish trend.

The formation of a zigzag pattern Ⓐ-Ⓑ-Ⓒ has begun. The impulse Ⓐ and correction Ⓑ have already ended. In the near future, the price is likely to continue falling in the primary impulse wave Ⓒ. Its end is expected to reach 108.13. At that level, it will be at 123.6% of first impulse wave Ⓐ.

Another option shows that the formation of a cycle triple zigzag is not yet fully completed.

Most likely, at the level of 104.64, the bearish cycle wave x ended. This took the form of a standard zigzag Ⓐ-Ⓑ-Ⓒ of the primary degree. After that, an upward impulse price movement in the wave z began.

The wave z could take the form of a zigzag Ⓐ-Ⓑ-Ⓒ, where the first impulse and correction are already completed.

The entire wave z could end near 119.61. At that level, it will be at the 76.4% Fibonacci extension of wave y.

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