Expected Next Move for the Dollar Index

The Dollar Index continued its decline on the daily timeframe after bouncing off the previously identified supply zones.

Currently, the index has several possible scenarios after reaching the current demand zones, which will be reviewed in detail.

Expected Scenarios

The first scenario is a bounce off the current demand zones. This scenario is likely due to the current behavior of the Dollar Index, which supports an upward move from the current levels.

If the index does indeed rise, we may see it target the new supply zones above, near 99.62, and close the price gap above.

The second scenario is a continuation of the decline. This scenario is also possible, but only if the current demand zones are broken and the price closes below them with a full bearish daily candle.

If the index falls and breaks the current demand zones and closes below them, we expect to see a continuation of the decline towards the next demand zones, which are located near the 96 level.

In any case, it is very important to follow the current movement as it will determine the next direction for the dollar index.