DXY, Broadening-Wedge, Pullbacks Likely!

Hello,

Welcome to this analysis about the US-Dollar Currency Index and the 12-hour timeframe perspectives. In recent times the Index developed important structures in which I discovered underlying formations and levels that will determine the upcoming destinies of the Index. When looking at my chart now we can watch there how the Index has formed this main broadening-wedge-formation marked with the boundaries in blue, within this formation the index has the coherent wave-count with the waves A to D already formed, and with the waves B and D the Index heavily pulled back bearishly to the downside. Now the index is about to form the wave E in which it already completed the first local wave A and has now the local resistance-cluster within there in which a pullback to the downside will be likely when the Index moves into it, this will complete the wave B and the Index will continue to form the wave C to the downside that is part of the major wave E, when this happens the Index is likely to firstly test the lower boundary and the 400-EMA marked in red within there, when this EMA and boundary do not hold with the Index pulling below this will complete the whole wedge-formation and will be the origin for continued bearish pressure to the downside till the lower levels are reached marked in my chart in blue, it will be important then how the Index reacts within there and if there comes a stabilization or just the next bearish setup to the downside.

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Information provided is only educational and should not be used to take action in the markets.