U.S. Dollar Index (DXY) Analysis – Weekly ChartThis chart of the U.S. Dollar Index (DXY) shows a potential Elliott Wave correction (A-B-C) pattern with Fibonacci retracement levels.
Key Observations:
Fibonacci Retracement Levels:
0.618 (109.846): Price touched this key retracement level before reversing downward.
0.5 (107.235): Also acted as a resistance zone.
0.236 (101.394): Possible short-term support level.
Elliott Wave A-B-C Structure:
Wave A: The initial decline from the peak.
Wave B: The corrective upward move (retraced to the 0.618 level).
Wave C: Expected further downside movement.
Moving Averages (MA):
The 105.08 MA was recently broken, signaling a possible trend shift downward.
The 102.28 MA could act as a short-term support level.
Bearish Scenario:
If the C wave completes, the price could drop toward 96.172 or even lower.
Confirmation of a breakdown below 102.28 would increase bearish momentum.
Trade Plan (Bearish Bias):
Entry: Short position if price breaks below 102.28.
Stop Loss: Above the recent high (~109.85).
Target Levels:
101.39 (0.236 Fib level)
96.17 (Full retracement)
Conclusion:
The DXY is showing bearish signs, having rejected the 0.618 Fib level and breaking key support zones.
If the Elliott Wave pattern plays out, we could see further downside toward the 96–98 range.
A confirmed move below 102.28 will validate a stronger bearish move.
