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The DXY dollar index recently completed the development of bearish correction wave b of a cycle degree. This consists of primary sub-waves Ⓦ-Ⓧ-Ⓨ-Ⓧ-Ⓩ of a triple zigzag.

After the end of the specified correction, a new bullish trend looks at forming a simple 5-wave impulse.

Currently, sub-waves ①-② have fully formed.

In the near term, we could see prices rise to 97.78, which is above the intervening wave Ⓧ.

dxy elliott

An alternative scenario shows that cycle correction b is not yet complete.

The primary wave Ⓨ completed its pattern lower than we assumed in the main scenario. This was followed by the intervening wave Ⓧ, which recently ended.

Currently, the index forms a final zigzag Ⓩ consisting of intermediate sub-waves (A)-(B)-(C).

It is possible that the price increase will complete near 94.19. At that level, correction (B) will be at 61.8% of impulse (A).

Then we could expect a drop in impulse (C) to 89.34. Here, wave Ⓩ will be at 61.8% of wave Ⓨ.

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