Forex Trading Library

DXY Primary Triple Zigzag To Hit 101.59

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The hourly chart of the DXY index shows the end of the global corrective trend. This took the form of a triple zigzag consisting of five main cycle waves w-x-y-x-z.

Now, we look towards the beginning of a major bearish trend. This starts in the form a triple zigzag pattern Ⓦ-Ⓧ-Ⓨ-Ⓧ-Ⓩ. It seems that the sub-waves Ⓦ-Ⓧ-Ⓨ-Ⓧ have already ended.

In the near future, prices will continue falling in the primary wave Ⓩ. Its end is possible near 101.59. At that level, it will be at 76.4% of wave Ⓨ.

Let’s consider an alternative option in which the formation of a cycle triple zigzag will continue.

Most likely, we see a zigzag price movement in the wave z.

The wave z could take the form of a zigzag Ⓐ-Ⓑ-Ⓒ. The impulse wave Ⓐ and the correction wave Ⓑ in the form of an intermediate double zigzag have ended. The entire wave z can complete its pattern near 116.21 level. At that level, it will be at the 61.8% Fibonacci extension of wave y.

The first sub-wave (1), which is part of the primary wave Ⓒ, is likely to reach the level of 107.22, marked by a minute correction.

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