The short‑term Elliott Wave view in the Dollar Index (DXY) indicates that the Index is correcting the cycle from the June 24, 2026 high within a double three structure. From the August 20, 2026 low, wave ((w)) concluded at 99.86. The subsequent pullback in wave ((x)) unfolded as a zigzag formation, where wave (a) terminated at 98.83 and wave (b) ended at 99.39. A final decline in wave (c) reached 98.58, completing wave ((x)) at a higher degree. Following this, the Index turned upward in wave ((y)), which is developing internally as another zigzag structure.
From wave ((x)), wave (a) advanced to 99.36, while the corrective pullback in wave (b) settled at 98.96. The Index has since resumed its upward trajectory, and as long as price remains above 98.58, the near‑term outlook favors further strength. The projected target aligns with the 100%–161.8% Fibonacci extension measured from the August 20 low. This extension defines a zone between 99.9 and 100.7, which serves as a potential area where sellers may emerge. Within this region, the Index could produce a three‑wave pullback or initiate a broader corrective phase to the downside.
Overall, the structure highlights a corrective sequence that remains constructive above 98.58. The unfolding zigzag in wave ((y)) suggests that buyers retain control in the short term, though the identified resistance zone should be monitored closely for signs of exhaustion.
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