The current chart of the DXY index shows the completion of the global corrective trend, which took the form of a triple zigzag consisting of five main cycle waves w-x-y-x-z.
Thus, the market is currently at the stage of reversal, that is, if this hypothesis is confirmed, the formation of the initial part of a new bearish trend may begin.
It is assumed that the bears are starting to build the first impulse sub-wave of the potential standard zigzag Ⓐ-Ⓑ-Ⓒ. The end of the impulse Ⓐ is possible just below the minimum of 104.63, which is marked by a minute fourth correction.
An approximate scheme of possible future movement is shown on the chart.
Let’s look at another option in which the formation of a cycle triple zigzag is not yet fully completed.
Most likely, the bearish cycle wave x was completed not so long ago, which took the form of a standard zigzag Ⓐ-Ⓑ-Ⓒ of the primary degree. After that, an upward impulse price movement began in the initial part of the wave z.
The wave z may take the form of a zigzag Ⓐ-Ⓑ-Ⓒ, where the first impulse and correction are already completed.
The entire z wave may complete its pattern near 114.41. At that level, it will be at the 50% Fibonacci extension of wave y.
