This article was first published on Orbex Forex Trading Blog.
This content is synced from the rightful owners. Copyright on text and images belong to the original source.
DXY ended wave IV of a bullish cycle pattern in a simple Ⓐ-Ⓑ-Ⓒ zigzag. Wave Ⓐ is a zigzag, wave Ⓑ is a triangle, and wave Ⓒ is a 5-wave bearish impulse.
At the time of writing, DXY has begun to reverse up in the final wave V.
We expect the 5-wave primary-degree upside to reach at least the 102.95 area. This is the previous high formed by cycle wave III.
An alternative scenario hints at a cycle-degree standard zigzag in a-b-c.
Cycle wave b, which is under development, resembles a triple Ⓦ-Ⓧ-Ⓨ-Ⓧ-Ⓩ zigzag. Wave (B) of Ⓩ is currently under construction.
In the near future, we can expect an upside move up to the 95.17 area. At that level, correction wave (B) will be equal to 50% of impulse (A).
Then, we could expect prices to fall in wave (C) near the 91.70 area. At that level, primary wave Ⓩ will be at 123.6% of wave Ⓨ.
To keep reading this article, please navigate to: Orbex Forex Trading Blog.