Greetings traders! The DXY has thrown a curve ball into the count as the preferred path ( As shown in red) has made a critical overlap of the proposed wave 1 bottom. But can we overlook that and stay with a much more pleasing shape in the larger impulse? I have found a way to complete the impulse off the low, but it is not very attractive and I wouldn't say it has "the right look". However, from a purist standpoint, it is one way to deal with the overlap. The overlap is small (only 4 ticks!) and I have seen instances in the DXY where rules have been broken yet the count turned out to be correct, so this one is still open to debate! Overall, I still remain bearish the DXY and the USD. Good luck!
Comment:
We also have to consider the leading diagonal which fits the picture much better!
Comment:
It has also been pointed out to me that we may get an ending diagonal in the DXY for the last wave 5! Not as common, but we will get 3-3-3-3-3 as a structure rather than the usual 5-3-5-3-5 of an impulse! Lets see how it develops!