Technical Analysis – US Dollar Index
The US Dollar Index is currently moving within a sideways range on the 4-hour chart. The US dollar is showing strong momentum and stability within WFVG levels. Therefore, it is preferable to wait for a break above 97.85, as a sustained move above this level would likely lead to continued upward movement. However, if 97.90 is broken and the price stays below it, along with the closure of FVG 4H, a decline in prices is expected.

Economic Outlook
The economic outlook for the US dollar remains uncertain, influenced by several key events, including the upcoming tariff implementation on August 1 and the US Federal Reserve’s concerns about rising inflation once the tariffs are implemented. On the other hand, the US interest rates were left unchanged in the last Fed decision. Although the majority still expects rates to stay the same, some members foresee a potential rate cut by the end of 2025. These events are putting the US dollar under pressure and causing volatility.

Liquidity Levels:
In case of a breakout, the expected levels to target are 98.25 and then 98.65.

In case of a breakdown, prices will likely move directly to 96.40.