Dollar Index (DXY) is not out of the wood yet (Elliott Wave)

DXY has room to run higher. The Elliott wave pattern suggests we are in a third of a third higher . If so, then DXY should continue a trend towards strength.

There is an orange trendline formed over calendar year 2020 in the way. Breaking above the orange trend line is a sign of strength.

Failure at the orange trend line or failure below 93.33 will bring into question this third of third wave (in Elliott wave speak...third of a third is typically the longest and strongest wave).

If DXY fails at the orange trend line, then we may have to consider this an A-B-C corrective bounce opening the door to new lows. (Alternate count)

Comment:

The breach of the red line at 93.33 leaves behind a three wave rise. This rise by many models suggests it was corrective and a retest of 91.75 may be on the horizon. This is a mature trend to the downside so be careful as a bullish reversal is lurching nearby.