Tue, May 30, 2023 @ 12:23 GMT
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Dollar Index: Intermediate Double Zigzag Likely to Complete Bearish Trend

DXY seems to be forming a triple zigzag pattern consisting of primary sub-waves Ⓦ-Ⓧ-Ⓨ-Ⓧ-Ⓩ. The sub-waves Ⓦ-Ⓧ-Ⓨ-Ⓧ look finished. The actionary wave Ⓨ is a double zigzag, the second intervening wave Ⓧ is a standard zigzag.

In the near future, the price depreciation in the primary wave Ⓩ is expected to continue. Judging by the initial part, it can take the form of an intermediate double zigzag.

The final of the bearish trend is expected closer to the 98.182 mark. At that level, primary wave Ⓩ will be at 61.8% of wave Ⓨ.

Let’s consider an alternative scenario, where the last part of the bullish correction trend is being built – a triple zigzag w-x-y-x-z, that is, a wave z is being formed.

The structure of the wave z is similar to the zigzag Ⓐ-Ⓑ-Ⓒ. In it, the first impulse Ⓐ and the correction Ⓑ in the form of an intermediate double zigzag have already been completed. The entire wave z may end near 115.81. At that level, it will be at the 76.4% Fibonacci extension of wave y.

The first target, to which the bulls can first reach, is the end of the intermediate impulse (3). Its end is possible near 112.95.

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