A Potential Upcoming Drop in the US Dollar Index

The US dollar's upward movement continues, currently in a strong corrective phase that could extend to the initial supply zones near 97.86 on the 4-hour timeframe. These are strong retracement levels that align with the daily range.

We are likely to see a return to decline in the US index from these levels, potentially falling towards 97.50 and 97.00.

If the initial supply zones are breached, we may see a continuation of the upward movement towards the next supply zone, located near 98.51. This is a very important and strong area, considered one of the most significant expected retracement points that could push the index back down again.

As we see it, a decline is anticipated in the medium term, which means we may soon see renewed weakness in the US dollar, especially given the negative signals already appearing on the index.