Technical Analysis of the U.S. Dollar Index
The U.S. Dollar Index is moving sideways on the 4-hour timeframe, while maintaining a downward trend on the weekly chart. Prices declined at the start of Monday, then formed a major bottom on Tuesday before rising again to grab the liquidity above Monday’s high near the 97.50 level. During today’s London session, prices turned lower from this area. A decline in the U.S. dollar is expected during the day if an hourly candle closes below 97.26. In this case, prices will form a Breaker Block around 97.30, which would serve as key selling areas (a bearish price action signal is required before entering short trades).

Key Economic News
The U.S. dollar is awaiting the release of the monthly Producer Price Index (PPI) data. This report is expected to have a notable impact on the dollar’s movements.

Liquidity Levels
Prices are expected to decline further, targeting 97.03 and then 96.85.

Invalidation Scenario
The bearish outlook will be invalidated if an hourly candle closes above 97.50.