DXY: How much more will the index fall?
|The current chart of the DXY index shows the end of the global corrective trend, which has taken the form of a triple zigzag consisting of five main cycle waves w-x-y-x-z.
Thus, the market may currently be at the beginning of the first part of a major bearish trend.
It is assumed that the bears form a triple zigzag pattern. It seems that the sub-waves have already been completed. In the near future, the price is expected to continue falling in the primary wave. Its end is possible near 101.35. At that level, it will be at 76.4% of wave. The wave itself is also similar to an intermediate triple zigzag.
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 may take the form of a zigzag, where the first impulse and the correction in the form of an intermediate double zigzag are already completed. The entire wave z may complete its pattern near 115.56. At that level, it will be at the 61.8% Fibonacci extension of wave y.
The intermediate impulse wave (3), which is part of the primary wave, will most likely be completed at 113.22, marked by the intermediate intervening wave (X).
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