The 1H timeframe 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, at present, the market could begin the formation of the initial part of a new bearish trend.
It is assumed that the bears form a triple zigzag pattern. The sub-waves look completed. In the near future, after a slight correction in the intervening wave, the price is expected to continue falling in the primary wave. Its end is expected to reach 103.43. At that level, it will be at 61.8% of wave.
Let’s consider an alternative option in which the formation of a cycle triple zigzag will continue.
Most likely, at the level of 104.64, the bearish cycle wave x was completed, which took the form of a standard zigzag of the primary degree. After that, an upward impulse price movement in the wave z began.
The wave z may take the form of a zigzag, where the first impulse and the correction in the form of an intermediate double zigzag are already completed.
The entire wave z may complete its pattern near 116.75. At that level, it will be at the 61.8% Fibonacci extension of wave y.
