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DXY Double Zigzag To Complete Bearish Trend

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Chart of DXY

DXY seems to be forming a triple zigzag pattern consisting of primary sub-waves Ⓦ-Ⓧ-Ⓨ-Ⓧ-Ⓩ. Waves Ⓦ-Ⓧ-Ⓨ-Ⓧ have ended. The actionary wave Ⓨ is a double zigzag, and the second intervening wave Ⓧ is a standard zigzag.

In the near future, the price depreciation in the primary wave Ⓩ is expected to continue. Judging by the initial part, it can take the form of an intermediate double zigzag.

The final of the bearish trend is expected closer to 98.182. At that level, the primary wave Ⓩ will be at 61.8% of wave Ⓨ.

Chart of DXY

Let’s consider an alternative scenario. The last part of the bullish correction trend is being built as a triple zigzag w-x-y-x-z.

The structure of wave z is similar to the zigzag Ⓐ-Ⓑ-Ⓒ. In it, the first impulse Ⓐ and the correction wave Ⓑ in the form of an intermediate double zigzag have ended. The entire wave z could end near 115.81. At that level, it will be at the 76.4% Fibonacci extension of wave y.

The first target to which the bulls can first reach is the end of the intermediate impulse (3). Its end is possible near 112.95.

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