DXY - The Bigger Picture - Elliott Wave Breakdown ✅

In Elliott Wave Theory, the impulsive wave can be broken down into the following 5 waves:
Wave 1 - is made up of 5 subwaves (impulse)
Wave 2 - Is a corrective wave made up of 3 waves (ABC correction)
Wave 3 - is another impulse wave made up of 5 subwaves (impulse)
Wave 4 - is a corrective wave made up of 3 waves (ABC correction)
Wave 5 - Can be either an impulse or a correction - But its made up of 5 waves.

The monthly timeframe can be broken down into the above Elliott Wave impulse schematic. We can see that we're on the 5th wave now, which is broken down into 5 waves. We appear to be nearing the completion (or have completed) the first subwave and now expecting subwave 2, which would be a corrective wave.

There needs to be a catalyst to reverse the market or to create a correction. We have the FED interest rate decision today which could create the start of the subwave 2 correction that we're expecting.

The subwave 2 move down will mean:
USDXXX SHORTS
XXXUSD LONGS

We will be working with the above bias for the foreseeable future until invalidated.

Hope this higher timeframe breakdown helps!

Goodluck and as always, trade safe!