Technical analysis of the US dollar index

Technical Analysis of the U.S. Dollar Index
The U.S. Dollar Index is trading in an up-trend on the 4-hour chart, currently hovering around 99.95 after bouncing off 99.50. The greenback continues to post gains, largely thanks to Chair Powell’s firmly hawkish tone at the press conference. A daily DFVG has formed, marking a key zone where prices may pull back before resuming higher.

Key Economic News
Today, traders await the ADP-style private-sector jobs report, expected at 106 K. Weekly jobless claims and the ISM Manufacturing PMI are also due, all of which could drive fresh volatility in the dollar.

These factors have propelled the USD sharply higher.

Liquidity Levels
Prices may retrace to 99.50 first; if a strong bullish reaction emerges there, the up-move could resume.

Invalidation
The corrective bearish scenario is invalidated if price breaks above 100.55.