FractalCycles at Work: Analysis of the U.S. Dollar Index (DXY)

This chart highlights the dominant 62-period cycle currently steering short-term swings in the U.S. Dollar Index. Price has been respecting the rhythm of this cycle, with recent highs and lows forming close to the projected turning points.

At the moment, DXY is trading near a potential cycle peak, and with the next downward phase approaching, the probability of a short-term pullback increases. Momentum indicators are also softening, offering further confirmation of cycle pressure beginning to turn.

Takeaway:
The 62-period cycle continues to provide reliable structure for timing DXY’s shorter-term movements. If the pattern persists, traders should be prepared for a potential downswing as the next cycle trough unfolds.