Dollar Index (DXY) technical analysis suggests near-term strength

Technical analysis of the Dollar Index (DXY) indicates a period of corrective movement within a double three structure. Current Elliott Wave projections suggest that as long as the index remains above the 98.58 level, the near-term outlook favors continued strength. A potential resistance zone has been identified between 99.9 and 100.7, where sellers may emerge and initiate a broader corrective phase to the downside.

On lower timeframes, the market's direction depends on the development of a valid motive structure. A bullish scenario requires a decisive breakout from current levels to establish a new Wave 1. Conversely, if price moves beyond previous peaks without forming a strong bullish structure and subsequently turns lower, the probability of a deeper, more time-consuming bearish correction increases.