From TradingView · · 1m 20s
Dollar Index correction targets resistance zone near 100
Elliott Wave analysis shows DXY in a double three rally that could reverse after hitting 99.9 to 100.7.
In brief
Elliott Wave analysis shows DXY in a double three rally that could reverse after hitting 99.9 to 100.7. The Dollar Index is expected to rise toward 99.9-100.7 before potentially reversing lower, as long as it stays above 98.58. Originally reported by TradingView.
Double three correction underway
The Dollar Index is correcting from its June 2026 high in a double three Elliott Wave structure. Wave ((w)) completed at 99.86 from the August 20 low.
Pullback wave finished lower
The pullback in wave ((x)) formed a zigzag pattern, with wave (a) hitting 98.83, wave (b) reaching 99.39, and wave (c) bottoming at 98.58.
Upward zigzag now developing
The Index turned up in wave ((y)), forming another zigzag. Wave (a) climbed to 99.36, wave (b) pulled back to 98.96, and the upward move has resumed.
Key support at 98.58
As long as the Dollar Index stays above 98.58, the near-term outlook favors further strength. Below that level, the bullish structure breaks down.
“as long as price remains above 98.58, the near‑term outlook favors further strength”
Resistance zone targets 99.9-100.7
The 100% to 161.8% Fibonacci extension projects a resistance zone between 99.9 and 100.7. Sellers may emerge in this area to push prices lower.
“This extension defines a zone between 99.9 and 100.7, which serves as a potential area where sellers may emerge”
Reversal likely at resistance
Within the resistance zone, the Index could produce a three-wave pullback or start a broader correction to the downside. Watch for signs of exhaustion.
The main idea
The Dollar Index is expected to rise toward 99.9-100.7 before potentially reversing lower, as long as it stays above 98.58.
