Short term view in Dollar Index (DXY) suggests the cycle from March 30, 2022 low is ongoing as an impulse Elliott Wave structure. Up from March 30 low, wave (i) ended at 100.52 and pullback in wave (ii) ended at 99.57. Index then resumes higher in wave (iii) towards 100.76. Dips in wave (iv) ended at 100.27, and final leg wave (v) ended at 101.03. This completed wave ((i)) in higher degree.
Index then pullback in wave ((ii)) which ended at 99.81. Dollar then rallies higher again and wave ((iii)) is proposed complete at 103.28. If the Index breaks above 103.28 again, then this suggests wave ((iii)) still remains in progress. Short term pullback in wave ((iv)) can see the Index correcting the rally from April 21 low before it resumes higher again.
Pullback is proposed to be in the form of a zigzag (a)-(b)-(c). Near term, as far as March 30 pivot low at 97.7 holds, expect any pullback to find support in 3, 7, or 11 swing for further upside. Assuming wave ((iii)) has really ended, ideally wave ((iv)) ends around 23.6 – 38.2 Fibonacci retracement of wave ((iii)). This comes at 101.95 – 102.46.
Dollar Index 45 Minutes Elliott Wave Chart
