Elliott Wave View: Dollar Index (DXY) Double Three Rally Likely to Break Lower – Action Forex

The short‑term Elliott Wave view in the Dollar Index (DXY) indicates that the Index is correcting the cycle from the June 24, 2026 high within a double‑three pattern. Starting from the August 20, 2026 low, wave ((w)) concluded at 99.86. The subsequent pullback in wave ((x)) unfolded as a zigzag formation, with wave (a) terminating at 98.83 and wave (b) ending at 99.39. A final decline in wave (c) reached 98.58, completing wave ((x)) at a higher degree. Subsequently, the Index turned upward in wave ((y)), which is developing internally as another zigzag structure.

From wave ((x)), wave (a) advanced to 99.36, while the corrective pullback in wave (b) settled at 98.96. The Index has since resumed its upward trajectory, and as long as price remains above 98.58, the near‑term outlook favors continued strength. The projected target aligns with the 100 %–161.8 % Fibonacci extension measured from the August 20 low, defining a zone between 99.9 and 100.7 where sellers might reappear. Within this range, the Index could generate a three‑wave pullback or trigger a broader corrective move downward.

Overall, the structure reflects a corrective sequence that remains constructive above 98.58. The unfolding zigzag in wave ((y)) suggests buyers maintain short‑term control, though the identified resistance zone warrants close monitoring for signs of exhaustion.

Dollar Index 60 Minute Elliott Wave Chart

DXY Elliott Wave Video

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