In my view, the DXY is likely to experience one final impulsive move toward the 127 level before entering a broader bearish phase. This outlook is supported by three main reasons.
1. Macro Elliott Wave Structure
From a long-term perspective, DXY completed wave Ⓐ at the end of 1992 and is currently in wave Ⓑ.
Zooming into wave Ⓑ, we can see that wave (b) retraced approximately 101%–123.6% of wave (a). As a result, this suggests that wave (c) should extend to around 101%–161.8% of wave (a) in order to complete wave Ⓑ.
2. Harmonic Confirmation (Alternate Bat Pattern)
The alternate Bat harmonic pattern further supports this view, indicating that wave (c) could reach approximately 113% of wave Ⓐ, which corresponds to a DXY level near 127, before the larger macro wave Ⓒ begins.
3. Triangle Formation in Wave (c)
In my view, wave (c) of wave Ⓑ is forming a triangle pattern. As shown on the chart, the market appears to be nearing the end of wave (D). This structure implies that a final wave (E) is still required to complete the triangle before the next major move.
Micro Perspective
On a lower time frame, when zooming into wave (D), DXY appears to be in wave c of wave (D). A bearish Gartley harmonic pattern suggests a potential 1.5% pullback.
Additionally, the micro wave count implies that one more minor wave 5 is needed to complete this structure
1. Macro Elliott Wave Structure
From a long-term perspective, DXY completed wave Ⓐ at the end of 1992 and is currently in wave Ⓑ.
Zooming into wave Ⓑ, we can see that wave (b) retraced approximately 101%–123.6% of wave (a). As a result, this suggests that wave (c) should extend to around 101%–161.8% of wave (a) in order to complete wave Ⓑ.
2. Harmonic Confirmation (Alternate Bat Pattern)
The alternate Bat harmonic pattern further supports this view, indicating that wave (c) could reach approximately 113% of wave Ⓐ, which corresponds to a DXY level near 127, before the larger macro wave Ⓒ begins.
3. Triangle Formation in Wave (c)
In my view, wave (c) of wave Ⓑ is forming a triangle pattern. As shown on the chart, the market appears to be nearing the end of wave (D). This structure implies that a final wave (E) is still required to complete the triangle before the next major move.
Micro Perspective
On a lower time frame, when zooming into wave (D), DXY appears to be in wave c of wave (D). A bearish Gartley harmonic pattern suggests a potential 1.5% pullback.
Additionally, the micro wave count implies that one more minor wave 5 is needed to complete this structure
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.