Dollar Index (DXY) – Bearish Minor 5 – Trend Continuation
|Dollar Index (DXY) bounced off the Reversal Area pointed out in the previous “Dollar-Index-DXY – Market Crash Road Map – Full Elliott Wave Cycle” and commenced the Corrective Pattern for Minor 4 (red).
Reversal also posted on previously in "USD Reversal - Metals Correction - FX Majors Weaker"
It seems like the Dollar Index (DXY) is approaching what is called the “Golden Section” in Elliott Wave Analysis which could act as a Point of Interest or Vibration Level, drawing the Price Action towards it as a magnet. Golden Section usually acts as Trend Continuation Levels, in the Dollar’s case a Bearish Trend Continuation for Minor 5 (red).
If the above would be correct, then the Dollar Index (DXY) could resume the Dominant Trend and finalize Minor 5 (red) and with it the entire Intermediate (C) leg (turquoise), thus completing the Cycle in Primary Wave A (blue).
Daily Chart (picture):
2H Chart (picture):
Dollar Index (DXY) – Corrective Minor 4 – Wave Analysis:
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Minute A (blue) commenced on the up-side showing a 3 Swing Sequence in its Minuette ABC Sub-Waves (orange).
Minuette (a) (orange) shows a typical 5 Swings Motive Structure.
Minuette (b) (orange) shows a deep pull-back in a Zig-Zag Pattern.
Minuette (c) (orange) shows an Extension, which took a form of an Wedge, making the entire Minute A (blue) develop as a Leading Diagonal for the overall Corrective Structure. -
Minute B (blue) retraced as a Triple Three Pattern, showing a Complex Structure in its Minuette WXYXZ Sub-Waves (purple).
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Minute C (blue) is possibly taking form of an Expanding Ending Diagonal, with 2 legs awaiting to finalize, which are Minuettes (iv) & (v) (black).
A Bearish Divergence would be awaited at the end of Minuette (v) (black).
Charts & Structures (preview):
EUR/USD:
Many pips ahead!
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