US Dollar Index: Are the bears strong enough to lower the price to 97.307?
The current DXY structure suggests that we are at the end of a global corrective trend.
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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 depreciation is expected to continue in the primary wave Ⓩ, it is also similar to the intermediate triple zigzag (W)-(X)-(Y)-(X)-(Z). The market is now in its sub-wave (Z).
The price may fall to 97.307. At that level, wave Ⓩ will be at 123.6 % of wave Ⓨ.
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Let's consider an alternative scenario in which the last part of the bullish correction trend is being built – a triple zigzag w-x-y-x-z, in other words, wave z is being formed.
Wave z can take the form of a zigzag Ⓐ-Ⓑ-Ⓒ. The first impulse Ⓐ and the correction Ⓑ in the form of an intermediate double zigzag are already completed.
The entire wave z may end near 115.75. At that level, it will be at the 76.4% Fibonacci extension of wave y.
Author
Jing Ren
Orbex
Jing-Ren has extensive experience in currency and commodities trading. He began his career in metal sales and trading at Societe Generale in London.
