The short-term Elliott Wave analysis for the Dollar Index (DXY) indicates that the cycle from the January 13, 2025 high is unfolding as an impulse pattern, characterized by a five-wave structure moving in the direction of the larger trend. The decline from the January 13, 2025 high began with wave (1), which concluded at 106.96. This was followed by a corrective rally in wave (2), peaking at 109.88. The Index then resumed its downward trajectory in wave (3), reaching 97.92, before a corrective wave (4) rally ended at 101.99, as illustrated in the 1-hour chart below.
Currently, wave (5) is in progress, unfolding as another impulse in a lesser degree. From the wave (4) high, wave (i) concluded at 100.27, followed by a corrective wave (ii) rally ending at 101.259. The Index continued lower in wave (iii) to 99.33, with a subsequent wave (iv) rally peaking at 100.118. The final leg, wave (v), completed at 98.69, finalizing wave ((i)). The corrective wave ((ii)) unfolded as a double three Elliott Wave structure, with wave (w) reaching 99.87. Index then pullback in wave (x) to 99.48, before concluding wave (y) at 100.54. The Index has now turned lower in wave ((iii)). In the near term, as long as the pivot at 101.99 remains intact, the Dollar Index should extend its decline, potentially reaching new lows as the impulse wave continues.
Currently, wave (5) is in progress, unfolding as another impulse in a lesser degree. From the wave (4) high, wave (i) concluded at 100.27, followed by a corrective wave (ii) rally ending at 101.259. The Index continued lower in wave (iii) to 99.33, with a subsequent wave (iv) rally peaking at 100.118. The final leg, wave (v), completed at 98.69, finalizing wave ((i)). The corrective wave ((ii)) unfolded as a double three Elliott Wave structure, with wave (w) reaching 99.87. Index then pullback in wave (x) to 99.48, before concluding wave (y) at 100.54. The Index has now turned lower in wave ((iii)). In the near term, as long as the pivot at 101.99 remains intact, the Dollar Index should extend its decline, potentially reaching new lows as the impulse wave continues.
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