DXY Has Cycle Correction IV Ended?

In the long term, DXY seems to be forming a bearish impulse that consists of five cycle sub-waves.

The chart shows the final part of the deep correction wave IV, which, apparently, has come to an end. It took the form of a primary triple zigzag Ⓦ-Ⓧ-Ⓨ-Ⓧ-Ⓩ.

We are currently in the initial part of the cycle wave V, which could be a 5-wave ①-②-③-④-⑤ impulse.

In the near future, primary wave ③ will lead the market towards the 89.53 area, or even lower.

DXY

The alternative scenario suggests the continuation of the development of the cycle correction wave IV. Perhaps wave IV is a large double zigzag of the primary degree Ⓦ-Ⓧ-Ⓨ.

The primary wave Ⓨ, which is similar to the triple zigzag (W)-(X)-(Y)-(X)-(Z), is currently under development. The first four parts of this figure have ended, with the final sub-wave (Z) under construction.

We can assume that the intermediate wave (Z) will end near 95.53. At that level, wave Ⓨ will be at 161.8% of wave Ⓦ.

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About the Author
“John Benjamin Resident Analyst at Orbex. John has over 8 years of experience specializing in the currency markets, tracking the macroeconomic and geopolitical developments shaping the financial markets. John applies a mix of fundamental and technical analysis and has a special interest in inter-market analysis and global politics.” [space height="10"] At Orbex, we are dedicated to serving our clients responsibly with the latest innovations in forex tools and resources to assist you in trading. Please Director at Visit our site for more details.

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