DXY | The Diagonal Test

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DXY | The Diagonal Test US Dollar Index CFD (USD)VANTAGE:USDXMehdi_Abbasi_EWPDXY | The Diagonal Test ๐ŸŒ€ In this update, our focus remains on the Aggressive Scenarioโ€”a higher-degree interpretation in which the recent structure may represent either Wave (C) or Wave (III). A closer examination of the 4-hour chart suggests that the current structure could initially be interpreted as a Double Zigzag. However, the ongoing price development also raises the possibility that the market is building a Leading Diagonal. At this stage, the more compelling structural interpretation is a Leading Diagonal with a 3-3-3-3-3 subdivision. The recent decline also appears internally impulsive and could represent part of Wave (C) or Wave (III) at a higher degree. If this structure continues to develop as expected, we should see the Leading Diagonal complete, followed by a distinct corrective phase. The market's behavior during that correction will be critical, as its depth and structure may provide valuable information about the true degree and position of the pattern within the larger count. Once the diagonal is complete, the following correction could develop at least as a Simple Zigzag for Wave (IV). There is also a possibility that a Double Zigzag could function as Wave (X) at a higher degree. Therefore, we are not forcing the market into a predefined pattern; we are allowing price action to reveal the structure. The Conservative Scenario has not been invalidated, but for now it is no longer our primary focus. Our analytical priority remains the Aggressive Scenario and the behavior of price within the current structure. The major invalidation level remains critical. If price breaks through that area and subsequently develops a valid motive structure, it could provide the first meaningful green light for the Conservative Scenario. Even then, however, a price break alone will not be sufficient. We must examine the corrective structure that follows the motive move and determine whether it conforms to the rules and guidelines of the Elliott Wave Principle. For now, the Conservative Scenario is being set aside through Wave (B), while the Aggressive Scenario remains under active observation. We are not trying to force the market to fit our count. We observe the structure, maintain the valid alternatives, and allow price action to determine what pattern the market is actually building. Ultimately, everything comes back to one principle: Structure First โ€” Scenario Second. Patterns whisper. I listen. โ€” Mr. Nobody ๐ŸŒ€๐Ÿ“Š U.S. Dollar Currency Index Jun 5 The DXY Time Paradox: Monday Engineering & Elliott Wave Dissecti Jun 7 DXY Structural Analysis: Navigating the Diagonal