U.S. Dollar IndexShort
2 - Crash Sequence & Brexit Volatility vs Wave Patterns
The rise in the Dollar Index (DXY) since February 2018 until present times has been labeled in a bullish corrective sequence in Cycle A (blue) degree, with its sub-waves composed out of Primary A-B-C (turquoise).
Primary A (turquoise) has been marked with a five-wave sequence in its Intermediate degree (1)(2)(3)(4)(5) (blue), topping out in the middle of August 2018.
Primary B (turquoise) has been labeled as a rather complex structure, within a Flat Correction.
After Intermediate (W) (purple) finalized its declines, the complex structure began unfolding for Intermediate (X) (purple), which appears to reveal itself as a Double Three with a Contracting Triangle as the termination point.
Minor C (red) would need to commence a last bearish swing needed in order to complete Intermediate (Y) (purple) degree, thus finalizing Primary B (turquoise).
Due to the Ascending Channel displayed on the charts, the structure in Primary B (turquoise) would be allowed to unfold either as a Running or Expanding Flat.
Minor C (red) would be expected to make an important decision at the lower trend-line of the Ascending Channel, which would reflect the 100% Fibonacci Extensions of Intermediates (W) & (X) (purple), and the level in focus could be the 94.55 handle.
In a Running Flat scenario, Minor C (red) could finalize at the above-mentioned level, and could commence a bullish impulse in Primary C (turquoise).
However, if the 94.55 levels would be breached, then Minor C (red) could present an Extension, one which could lead towards lower grounds and the next best interpretation for the overall structure in Primary B (turquoise) would reflect an Expanding Flat. In this scenario, the Fibonacci Extensions of Intermediates (W) & (X) (purple) could reflect the 150-161.8% measurements but could also extend towards the 200% levels. The Vibration Zone displayed on the DXY Daily chart does seem to have the Fibonacci lined-up, thus making the Expanding Flat scenario worthy of attention.
The preferred scenario and the overall outlook for the DXY within this report would reflect the Expanding Flat structure, thus pointing towards the probability of more weakness ahead for the USD.
Primary A (turquoise) has been marked with a five-wave sequence in its Intermediate degree (1)(2)(3)(4)(5) (blue), topping out in the middle of August 2018.
Primary B (turquoise) has been labeled as a rather complex structure, within a Flat Correction.
After Intermediate (W) (purple) finalized its declines, the complex structure began unfolding for Intermediate (X) (purple), which appears to reveal itself as a Double Three with a Contracting Triangle as the termination point.
Minor C (red) would need to commence a last bearish swing needed in order to complete Intermediate (Y) (purple) degree, thus finalizing Primary B (turquoise).
Due to the Ascending Channel displayed on the charts, the structure in Primary B (turquoise) would be allowed to unfold either as a Running or Expanding Flat.
Minor C (red) would be expected to make an important decision at the lower trend-line of the Ascending Channel, which would reflect the 100% Fibonacci Extensions of Intermediates (W) & (X) (purple), and the level in focus could be the 94.55 handle.
In a Running Flat scenario, Minor C (red) could finalize at the above-mentioned level, and could commence a bullish impulse in Primary C (turquoise).
However, if the 94.55 levels would be breached, then Minor C (red) could present an Extension, one which could lead towards lower grounds and the next best interpretation for the overall structure in Primary B (turquoise) would reflect an Expanding Flat. In this scenario, the Fibonacci Extensions of Intermediates (W) & (X) (purple) could reflect the 150-161.8% measurements but could also extend towards the 200% levels. The Vibration Zone displayed on the DXY Daily chart does seem to have the Fibonacci lined-up, thus making the Expanding Flat scenario worthy of attention.
The preferred scenario and the overall outlook for the DXY within this report would reflect the Expanding Flat structure, thus pointing towards the probability of more weakness ahead for the USD.
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