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dxy elliott

The DXY structure shows a bearish triple Ⓦ-Ⓧ-Ⓨ-Ⓧ-Ⓩ zigzag, which forms a cycle corrective wave b.

A look at the 1-hour timeframe shows the structure of the final wave Ⓩ of the primary degree. This consists of sub-waves (A)-(B)-(C).

Intermediate wave (A) is a simple 5-wave impulse. Correction wave (B) is flat, whilst impulsive wave (C) is in its initial stage of development.

In the medium term, we could see a decline in the specified impulse to the 90.55 area. At that level, wave (C) will be at 61.8% of intermediate impulse (A).

dxy

An alternative scenario shows that the primary wave Ⓩ is not yet complete. Instead, intermediate correction (B) is currently under development.

Here, the correction wave (B) is a small double W-X-Y zigzag. Waves W and X are complete and wave Y is nearing its conclusion.

In the short term, we can expect prices to extend up in the minute impulse ⓒ to 95.48.

At that level, wave (B) will be at 61.8% of bearish impulse (A).

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