DXY Ending Soon The Elliott Wave Flat Correction?!DXY short-term Elliott wave view suggests that the index is doing a Flat correction coming from 8/28/2018 low within cycle red wave II. Meaning that the internal distribution of cycle from that low is showing the sub-division of 3-3-5 wave structure. Where black wave ((A)) ended in 3 swings at 95.73 on 9/04 peak. Down from there the decline to 93.81 low ended black wave ((B)) lower as double three structure with the sub-division of 3 wave corrective sequence in blue wave (W),(X) & (Y).
The initial decline to 94.43 low ended blue wave (W) as zigzag structure. Up from there, the bounce to 94.99 high ended blue wave (X). Down from there, the decline to 93.81 low ended blue wave (Y) as zigzag structure & also completed the black wave ((B)) as well. Above from 93.81 low, the rally higher is taking place as an impulse in black wave ((C)) of II with the sub-division of 5 waves structure in blue wave (1),(3) & (5).
Where the first leg higher to 94.40 high ended blue wave (1). And pullback to 93.95 low ended blue wave (2).
A rally to 95.36 high ended blue wave (3). Then a pullback to 94.99 low ended blue wave (4). Near-term bluee wave (5) remain in progress and may or may not extend higher 1 more time within the blue box area by holding below the 95.93 invalidation level before ending the Flat correction in cycle red wave II.
Afterwards, the index is expected to resume the downside or should react lower in 3 swings at least. We don’t like buying the index.
