Technical Analysis of the U.S. Dollar Index
The U.S. Dollar Index has been sliding sharply since Tuesday, trading in a clear down-trend on the 4-hour chart after rejecting from a DIFVG zone. Price is now hovering near 98.10 and sitting inside a broader DFVG area that could spark a bounce, so trading the dollar here carries added risk. Waiting for a test of 97.50 may confirm whether the decline will extend. Overall, downside pressure remains evident.
Key Economic News
The top event today is Donald Trump’s speech. Recent Trump remarks have moved markets, especially amid his latest friction with Fed Chair Jerome Powell. In addition, traders are watching the Bank of England’s rate decision, which can indirectly affect dollar flows.
Liquidity Levels
If weakness persists, the index could drop toward 97.50, then 97.10, and finally 96.40.
Invalidation
The bearish scenario is nullified if price rebounds and closes above 98.85.
