Short Term view in US Dollar Index (DXY) suggests the rally from Sept 3, 2021 low is unfolding as a 5 waves impulse Elliott Wave structure. Up from Sept 3, wave ((i)) ended at 92.8, dips in wave ((ii)) ended at 92.32. Index resumes higher in wave ((iii)) to 93.45, pullback in wave ((iv)) ended at 93. The Dollar Index then completed wave ((v)) at 93.52 which should also end wave 1 in higher degree. Pullback in wave 2 ended at 92.98 with internal subdivision as a zigzag. Down from wave 1, wave ((a)) ended at 93.14, wave ((b)) ended at 93.25, and wave ((c)) ended at 92.98.
Index has resumed higher in wave 3. Up from wave 2, wave (1) ended at 93.12 and pullback in wave (2) ended at 93. Index resumes higher in wave (iii) towards 93.42, and pullback in wave (iv) ended at 93.2. Final leg higher wave (v) of ((i)) ended at 93.49. Pullback in wave ((ii)) has also ended at 93.3 and Index has resumed higher again. Up from wave ((ii)), wave (i) ended at 93.8 and pullback in wave (ii) ended at 93.6. Near term, as far as September 23 pivot low at 93 remains 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 September 3 low towards 94.56 – 95.55.
DXY (Dollar Index) 60 minutes Elliott Wave chart
