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 seems to be forming a bearish wave IV of a cycle degree, consisting of primary corrective sub-waves Ⓐ-Ⓑ-Ⓒ.
Wave Ⓐ is a 5-wave impulse, and wave Ⓑ is an (A)-(B)-(C)-(D)-(E) triangle. Impulse wave Ⓒ is currently under development.
In the short term, we can expect prices to rise near 97.35 in wave (4). At that level, the pair will be at 38.2% of the Fibonacci extension of wave (3).
Afterward, the decline in the 5th wave could take us to wave ④’s low.
An alternative scenario suggests that the cycle degree wave IV is taking the form of a triple zigzag Ⓦ-Ⓧ-Ⓨ-Ⓧ-Ⓩ.
Thus, in the short term, we can expect prices to rise in wave Ⓧ near 98.71. At that level, wave Ⓧ would be at 61.8% of wave Ⓨ.
This could be followed by a bearish leg in wave Ⓩ near 135.80 and perhaps slightly below wave Ⓨ.
To keep reading this article, please navigate to: Orbex Forex Trading Blog.