Short term Elliott Wave view on Dollar Index (DXY) suggests cycle from 8.10.2022 low is in progress as an impulse Elliott Wave structure. Up from 8.10.2022 low, wave 1 ended at 110.786 and dips in wave 2 ended at 107.69. The Index has resumed higher in wave 3 with internal subdivision as another 5 waves in lesser degree. Up from wave 2, wave ((i)) ended at 110 and dips in wave ((ii)) ended at 109.27. Index then resumed higher again in wave ((iii)).
Up from wave ((ii)), wave (i) ended at 110.26, and pullback in wave (ii) ended at 109.35. Index resumes higher in wave (iii) towards 111.57, and pullback in wave (iv) ended at 110.612. Near term, while above wave (iv) low at 110.61, expect the Index to extend higher within wave ((v)) to complete wave 3. Afterwards, it should pullback in wave 4 to correct cycle from 9.13.2022 low before the Index resumes higher again. As far as pivot at 107.7 low stays intact, expect pullback to find support in 3, 7, or 11 swing for further upside. Potential target higher is 100% -161.8% Fibonacci extension from 8.10.2022 low which comes at 113.8 – 117.6 area.
