Expected Scenarios for the US Dollar Index Movement

The Dollar Index is moving in a strong upward trend, supported by the US-Iran trade war, which has pushed the currency up to supply zones on the daily timeframe, as shown on the chart.

The Dollar Index is currently attempting a corrective move after reaching supply zones, which represent strong resistance levels on the daily timeframe. These resistance levels are expected to push the index down to the daily demand zones around $98.73.

Expected Scenarios

Currently, we have several expected scenarios for the Dollar Index movement on the daily timeframe.

The first scenario is a continuation of the decline to the daily demand zones, from which we may see a return to the upward trend and a renewed attempt to target the higher supply zones.

The second scenario is a decline, breaking the initial demand zones and continuing the downward movement to the next demand zones near $97.66.

The final scenario is a return to an upward trend or moving sideways for now until the Fed meeting next Wednesday, and then starting to move and take a clear direction after the press conference and Powell's speech.