Hello traders. In this article, we are going to present another Elliott Wave trading setup we got in Dollar Index . As our members know DXY index remains bearish against the 109.96 pivot. Recently Dollar made a clear 7 swings pattern and completed its correction precisely at the Equal Legs zone, referred to as the Blue Box Area. In the following sections, we are going to explain Elliott Wave pattern and discuss the trading setup in detail.
DXY Elliott Wave 4 Hour Chart 05.10.2025
Dollar is doing recovery against the 109.96 peak. The price action shows an incomplete higher high sequences in the rally from the low, suggesting potentially more short term strength. This correction is unfolding as an Elliott Wave Double Three pattern. We expect more upside toward the Blue Box zone at 101.61-103.15 area, where we are looking to re-enter as sellers.
We recommend members to avoid buying Dollar. As the main trend remains bearish, we expect at least a 3-wave pull back from this Blue Box area. Once the price touches the 50 fibs against the X red connector, we’ll make positions risk-free and set the stop loss at breakeven and book partial profits. On other hand, breaking above the 103.15 peak would invalidate the trade.
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Quick reminder on how to trade our charts :
Red bearish stamp+ blue box = Selling Setup
Green bullish stamp+ blue box = Buying Setup
Charts with Black stamps are not tradable. 🚫
DXY Elliott Wave 4 Hour Chart 05.14.2025
The Dollar has extended into the Blue Box area between 101.61 and 103.15 and, as expected, found sellers. DXY has made a solid decline from our Selling Zone. As a result, any short positions taken from the Blue Box should now be risk-free, with partial profits already booked.
At this point, we would like to see a further decline and a break below the April 21st low to confirm that the next leg down is in progress.
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Source: https://elliottwave-forecast.com/trading/dollar-index-dxy-selling-blue-box/