US Dollar Index (DXY) Completes a Wave Cycle Near Current Lows
|Talking Points:
- The current Elliott Wave cycle has the minimum waves in place to be complete
- There is a trend line from 2017 passing through this same price zone
I can count the minimum Elliott Waves in place for a completed cycle from the September 28 high to this week’s lows. The US Dollar Index (DXY) is completing a bearish impulse wave labeled 1-2-3-4-5.
A Trend Line May Support Prices
In addition to this completed Elliott wave cycle, there is a multi-year trend line passing through the same zone.
If you draw a trend line connecting the January 2017 and March 2020 highs, you’ll notice that DXY broke above this trend line in April 2022. DXY is now correcting lower to retest the topside of this broken resistance line. This is classic technical analysis at its finest.
As a result, it is highly likely DXY will bounce higher in reaction to the completed Elliott Wave cycle and multi-year trend line.
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