Short Term Elliott Wave structure in Dollar Index (DXY) suggests the decline to 89.209 on January 6 low ended wave (3). Wave (4) bounce is currently in progress and the Index shows an incomplete 5 swing sequence from January 6 low, favoring more upside. Internal of wave (4) is unfolding as a double three WXY Elliott Wave structure. Up from wave (3) low at 89.209, wave ((a)) ended at 90.13 and pullback in wave ((b)) ended at 89.66. Index then resumed higher to 90.728 to end wave ((c)). This move higher also completed wave W in higher degree. The Index then corrected in wave X as a zigzag. Down from wave W, wave ((a)) ended at 90.3, wave ((b)) ended at 90.55, and wave ((c)) ended at 89.932. This completed wave X.
Index then resumed higher in wave Y, with internal subdivision of another double three in lesser degree. Up from wave X, wave ((w)) ended at 90.95. Pullback in wave ((x)) is in progress and expected to hold above wave X low at 89.93 for further upside. Potential target higher is 100% – 161.8% Fibonacci extension from wave (3) low which comes at 91.43 – 92.37 area where sellers should appear for 3 waves pullback at least.
Dollar Index 60 Minutes Elliott Wave Chart
