Technical Analysis of the US Dollar Index
The sideways movement continues to dominate the US dollar index. The selling zone we highlighted in the previous report, around the 97.90 levels, is still holding as prices remain around it without showing any strong and clear selling signals yet. We also notice that prices have absorbed the liquidity above Monday’s high. It is worth noting that prices remain in a downtrend on the weekly timeframe. Currently, we need to see prices close a 4-hour candle below 97.65 to start selling positions. A further close below 97.30 would be another confirmation of the bearish direction.

Key Economic News
The US dollar is awaiting medium-importance data today, including Durable Goods Orders and Core Durable Goods Orders (m/m). We are also waiting for Consumer Confidence data. These releases are expected to influence the dollar’s movements during the day.

Liquidity Levels
A price decline is expected once the conditions required for confirming the downtrend are met, targeting 97.30 first and then 96.65.

Invalidation of the Scenario
The bearish outlook will be invalidated if prices revisit the 98.40 level.