Dollar Index Elliott Wave outlook: Bearish impulse aims for 97.3 [Video]

The Dollar Index (DXY) displays a bearish sequence with lower lows since its August 1, 2025 peak, signaling further downside. The decline from this high unfolds as a five-wave impulsive Elliott Wave structure. From the August 1 top, wave ((i)) concluded at 98.6, followed by a wave ((ii)) rally peaking at 99.07. The Index then dropped in wave ((iii)) to 97.94, with a corrective wave ((iv)) reaching 98.67. The final leg, wave ((v)), completed at 97.62, marking the end of wave 1 in a higher degree.

A corrective wave 2 emerged as a double three Elliott Wave pattern. From the wave 1 low, wave ((w)) climbed to 98.32, followed by a pullback in wave ((x)) to 97.72. The subsequent wave ((y)) peaked at 98.83, finalizing wave 2. The Index has since resumed its decline in wave 3, structured as another five-wave sequence in a lesser degree. From the wave 2 high, wave ((i)) fell to 97.55, and a wave ((ii)) rally reached 98.54. As long as the pivot at 98.83 holds, the DXY should extend lower, targeting 97.3 in the near term. Traders should monitor this pivot for confirmation of the bearish trend.

Dollar Index – 60 minute Elliott Wave technical chart

DXY – Elliott Wave [Video]