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).
This market forecast is for general information only. It is not an investment advice or a solution to buy or sell securities.
Authors' opinions do not represent the ones of Orbex and its associates. Terms and Conditions and the Privacy Policy apply.
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Before deciding to trade foreign exchange, you should carefully consider your investment objectives, level of experience, and risk appetite. There is a possibility that you may sustain a loss of some or all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended content
Editors’ Picks
AUD/USD hovers around 0.6500 amid light trading, ahead of US GDP
AUD/USD is trading close to 0.6500 in Asian trading on Thursday, lacking a clear directional impetus amid an Anzac Day holiday in Australia. Meanwhile, traders stay cautious due ti risk-aversion and ahead of the key US Q1 GDP release.
USD/JPY finds its highest bids since 1990, near 155.50
USD/JPY keeps breaking into its highest chart territory since June of 1990 early Thursday, testing 155.50 for the first time in 34 years as the Japanese Yen remains vulnerable, despite looming Japanese intervention risks. Focus shifts to Thursday's US GDP report and the BoJ decision on Friday.
Gold price treads water near $2,320, awaits US GDP data
Gold price recovers losses but keeps its range near $2,320 early Thursday. Renewed weakness in the US Dollar and the US Treasury yields allow Gold buyers to breathe a sigh of relief. Gold price stays vulnerable amid Middle East de-escalation, awaiting US Q1 GDP data.
Injective price weakness persists despite over 5.9 million INJ tokens burned
Injective price is trading with a bearish bias, stuck in the lower section of the market range. The bearish outlook abounds despite the network's deflationary efforts to pump the price. Coupled with broader market gloom, INJ token’s doomed days may not be over yet.
Meta Platforms Earnings: META sinks 10% on lower Q2 revenue guidance Premium
This must be "opposites" week. While Doppelganger Tesla rode horrible misses on Tuesday to a double-digit rally, Meta Platforms produced impressive beats above Wall Street consensus after the close on Wednesday, only to watch the share price collapse by nearly 10%.