Technical Analysis of the US Dollar Index

The US Dollar Index is moving in a downward trend on the 4-hour timeframe. Prices have formed a Fair Value Gap (FVG) around the 97.30 level, and a downward reaction is expected from this area, continuing the decline in the US dollar. We also notice that the bearish trend aligns with the daily and weekly timeframes, which supports a further drop in the index during the day.

Key Economic Events

Today, the US dollar awaits important economic data: weekly jobless claims, the manufacturing and services PMI readings, and new home sales. These events are expected to move the markets significantly.

Liquidity Levels

Prices are expected to decline towards the 96.90 level, followed by a potential target around 96.38.

Scenario Invalidation:
The bearish scenario will be invalidated if prices reach the 97.90 level.