Short Term Elliott Wave view in Dollar Index (DXY) suggests rally to 109.29 on 7.14.2022 peak ended wave (3). Pullback in wave (4) ended at 105.05 with internal subdivision as a zigzag Elliott Wave structure. Down from wave (3), wave A ended at 106.38. Wave B rally ended at 107.42. The Index then resumes lower in wave C which ended at 105.05. The 45 minutes chart below shows the internal subdivision of wave C in 5 waves. Down from wave B, wave ((i)) ended at 106.06, and rally in wave ((ii)) ended at 106.975.
Index resumes lower in wave ((iii)) towards 105.54, and rally in wave ((iv)) ended at 106.66. Final leg lower wave ((v)) ended at 105.05 which completed wave C of (4). The Index has turned higher in wave (5), but it still needs to break above the previous wave (3) peak at 109.29 to rule out a double correction. Up from wave (4), wave ((i)) ended at 105.7 and dips in wave ((ii)) ended at 105.45. Index then resumes higher in wave ((iii)) towards 106.55. Expect the Index to extend higher 1 more time to complete wave ((v)) of 1, then it should pullback in wave 2 to correct cycle from 8/2/2022 low before the next leg higher. As far as pivot at 105.05 low stays intact, expect dips to find support in 3, 7, or 11 swing for further upside.
$DXY 45 Minutes Elliott Wave Chart
