Short Term Elliott Wave view on Dollar Index (DXY) suggests the rally from October 28, 2021 low is unfolding as a 5 waves impulse. Up from October 28 low, wave ((i)) ended at 94.3 and dips in wave ((ii)) ended at 93.82. The Index rallies higher in wave ((iii)) towards 94.47, pullback in wave ((iv)) ended at 94.28, and final leg wave ((v)) ended at 94.62. This completed wave 1 in higher degree. Pullback in wave 2 has ended at 93.88 . Internal subdivision of wave 2 unfolded as a zigzag structure. Down from wave 1, wave ((a)) ended at 94.18, wave ((b)) ended at 94.38, and wave ((c)) ended at 93.88.
The Index has extended higher in wave 3 with internal subdivision of another 5 waves in lesser degree. Up from wave 2, wave (i) ended at 94.43, and pullback in wave (ii) ended at 94.12. Short term, expect two more highs to end wave (iii) and (v) before the Index ends wave ((i)) of 3. The index should then pullback in wave ((ii)) of 3 to correct cycle from November 9, 2021 low before the next leg higher. As far as pivot at 93.88 low stays intact, expect dips to find support in 3, 7, or 11 swing for further upside.
Dollar Index 60 Minutes Elliott Wave Chart
