Dollar Index Elliott Wave forecast: Bullish sequence calls for extended gains [Video]

The Dollar Index (DXY) maintains an incomplete bullish sequence from the January 27, 2026 low, supporting expectations for further upside. The projected target lies within the 100%–161.8% Fibonacci extension range, measured from that low, pointing toward 102.7–106.0. This zone provides a clear technical framework for anticipating continued strength.

From a short‑term perspective, the rally that began on May 29 is unfolding as a five‑wave impulsive Elliott Wave structure. Within this advance, wave ((i)) concluded at 100.31, followed by a corrective pullback in wave ((ii)) that ended at 99.38. The subsequent progression has carried the Index higher in wave ((iii)), which itself forms a smaller degree impulse.

From wave ((ii)), wave (i) terminated at 99.79, while wave (ii) retraced to 99.46. The Index then extended upward in wave (iii) to 101.12, before wave (iv) dipped modestly to 100.69. One more push higher is expected to complete wave (v) of ((iii)). After that, a corrective phase in wave ((iv)) should unfold, addressing the cycle from the June 15 low before resuming the broader advance.

Near term, as long as the pivotal support at 99.40 remains intact, pullbacks are expected to attract buyers. These corrections should unfold in the typical three, seven, or eleven‑swing sequences, reinforcing the bullish bias and supporting the view of continued strength in the Dollar Index.

Dollar Index 45-minute Elliott Wave chart

Dollar Index Elliott Wave [Video]