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The medium-term DXY structure hints at a bullish impulse wave of the cycle degree, consisting of primary degree waves.
Following the conclusion of a wave bears opened several bulk short orders the pattern of which looks like a triple zigzag Ⓦ-Ⓧ-Ⓨ-Ⓧ-.
Within the next few trading sessions we expect to see a decline near 97.70. That is the level where wave b will be at the yum 61.80% Fibonacci retraxement.
In corrective patterns, we often see waves b reaching the 61.8% of the impulse a, so the probability of reaching this level is high.
When keeping an open mind for alternative scenarios, we can also expect the cycle wave correction b to take the form of a flat, for example.
If this hypothesis is correct, a slight decline to 98.51 can be expected. At that level, the intermediate sub-waves (W) and (Y) will be proportional to each other.
Then, primary wave Ⓑ could reach the 99.90 level.
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