U.S. Dollar Index (DXY) – Weekly Outlook | Elliott Wave Analysis

This DXY weekly chart highlights a potential (A)-(B)-(C) corrective structure unfolding after a completed 5-wave impulsive rally. Wave A bottomed out around the 100 level, followed by a retracement in Wave B which tested the 111.893 supply zone. Currently, price is reacting strongly from that level, suggesting a possible move toward completing Wave C.

Current Market Structure:

Wave B faced strong rejection near the 111.893 resistance/supply zone.

Price is now hovering near a short-term support zone (light green) around 102–100, which could serve as a decision point.

Two scenarios are in play:

1. Bullish Rejection from Support: If buyers defend the support, a new bullish leg may begin, retesting 111.893 or even pushing slightly higher.


2. Break Below Support: A decisive breakdown could initiate a deeper decline toward the major demand zone (highlighted in beige) near 90.00–92.50, completing Wave C.




Key Technical Zones:

Resistance (Supply Zone): 111.893

Immediate Support: 100.00–102.00

Major Demand Zone (Wave C Target): 90.00–92.50

Current Price: 102.892


Elliott Wave View:
The ongoing move appears to be part of a Wave C correction, which will be confirmed only if price breaks below the current support. On the flip side, a higher low and bullish continuation could mean the correction ended early, transitioning into a fresh impulse.

Conclusion:
The DXY is at a critical juncture. Traders should monitor price action closely at the 100–102 zone. A bounce could trigger a bullish setup back toward resistance, while a breakdown would likely bring Wave C to completion in the 90–92.50 zone.
Stay tuned and trade with discipline.