Dollar Index – Weekly Analysis
The U.S. Dollar is back in focus. In this DXY weekly report, we break down the latest rally through candles, momentum, key technical levels, and the Elliott Wave framework to determine whether the move marks a meaningful shift or just another countertrend phase. By aligning these signals, we outline the highest-probability paths ahead and what the Greenback may be preparing in the weeks and months to come.
CANDLES
Last week, the Dollar formed a bullish Piercing Line on the weekly frame, and this week it confirmed it decisively. At the same time, the daily frame recorded an impressive rally, lifting price above the 100-, 200-, and 50-day moving averages while also registering an 8/20 EMA bullish cross.
Overall, the Dollar Index built strongly on last week’s early bullish momentum and significantly increased bullish odds into the mid-term frames. The outlook is bullish, and the rally is likely to continue.
ELLIOTT WAVES
At this point, there is no substantial evidence to justify a change in the very long-term outlook.
Road Map
The mid term road map also remains unchanged.
Micro
At the micro level, DXY may have completed wave ii and begun developing an impulsive move upward, potentially wave iii.
SUMMARY
After closing 2025 with a balanced mix of signals, the Dollar began 2026 with a notably aggressive advance, recording solid technical achievements on both the daily and weekly frames. This move placed the index comfortably above long-term support levels. If the momentum holds and DXY prints stronger candles on the 10–15D frames in the coming weeks, bulls are likely to capitalize on the weakness left by December’s bearish positioning.
The Greenback has shifted from moderately bullish to strongly bullish. The development of impulsive Elliott Wave structures to the upside further reinforces the bullish stance indicated by both candles and technical indicators.
Happy Trading!
