Forex Trading Library

DXY Triple Zigzag Drops Below $100!

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Chart of DXY

The long-term outlook for the dollar index shows a triple zigzag pattern. This consists of primary sub-waves Ⓦ-Ⓧ-Ⓨ-Ⓧ-Ⓩ. At the moment, the sub-waves Ⓦ-Ⓧ-Ⓨ-Ⓧ look completed.

The final wave Ⓩ is forming. Judging by the internal structure, this wave can take the form of an intermediate double zigzag (W)-(X)-(Y). The sub-waves (W)-(X) look finished, wave (Y) is under development.

The end of the bearish pattern is expected near 96.319. At that level, primary wave Ⓩ will be at 76.4% of wave Ⓨ.

Chart of DXY

Let’s look at the second markup scenario, in which a wave z is formed in a triple zigzag w-x-y-x-z.

The internal structure of the wave z is similar to the zigzag Ⓐ-Ⓑ-Ⓒ. In it, the first impulse Ⓐ and the correction Ⓑ have ended. The final wave Ⓒ is being constructed, or rather its intermediate sub-wave (3).

It is possible that the impulse (3) will be at 200% of impulse (1), so its end can be expected near 109.48.

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