U.S. Dollar Index Set for Bearish Continuation

The U.S. Dollar Index (DXY) has completed a five-wave impulse decline (labeled (1) through (5)) from the top of the descending channel. This downward move suggests a completed impulsive bearish leg. Following that, we’ve seen a complex corrective structure – a WXY double zigzag correction – now complete.

Price action shows a rejection from the upper trendline resistance near wave (2), confirming the bearish structure remains intact. The bounce into the corrective high (wave (2)) failed to break above key resistance, and we are now potentially entering a new impulsive move down labeled as wave (3) of the next larger degree impulse.

Primary Impulse Decline: Wave (1) to (5): Classic 5-wave move down ending late April.
Corrective Phase: Complex WXY correction (with subwaves A-B-C in both W and Y).
Current Wave in Play: Wave (3) of a larger impulsive sequence is initiating.

T1: 99.172
T2: 98.013
SL: 101.259
If price closes above 101.265 the current bearish impulse scenario would be invalidated.