Short term Elliott Wave view in Dollar Index (DXY) suggests cycle from March 31, 2021 peak has ended. Index is now correcting that cycle and the correction should unfold in 3, 7, or 11 swing. The rally from May 25, 2021 low is currently unfolding as a zigzag Elliott Wave structure. Up from May 25 low, wave A ended at 90.44. Internal subdivision of wave A unfolded as a 5 waves impulse structure. Wave ((i)) of A ended at 89.84 and pullback in wave ((ii)) ended at 89.58. Index resumes higher in wave ((iii)) towards 90.18. Wave ((iv)) ended at 90, and final leg wave ((v)) of A ended at 90.44.
Wave B pullback has ended at 89.66 with internal unfolding as a zigzag in lesser degree. Down from wave A, wave ((a)) ended at 89.98 and wave ((b)) ended at 90.12. Final leg wave ((c)) of B ended at 89.66. Wave C is currently in progress and should see a few more highs before ending the cycle from May 25 low. Near term, while dips stay above 89.66, expect the Index to extend higher a few more highs before ending the cycle. The 100% extension from May 25 low comes at 90.57 – 91.1 where cycle from March 25 low can end and a 3 waves reaction lower can happen.
