Technical Analysis of the U.S. Dollar Index
The U.S. Dollar Index remains in a primary downtrend on the weekly timeframe, while showing a corrective upward move on the four-hour chart. Prices traded sideways on Monday as they prepare for the expected manipulation during the New York session when the CPI report is released today. We still expect prices to rise first above Monday’s high and enter the WOB area, with potential targets at 98.20 and then 98.60.

Key Economic News
The Consumer Price Index (CPI) is one of the most closely watched indicators for gauging inflation in the United States. A reading above expectations will increase pressure on the Fed to raise interest rates to curb inflation, which supports the dollar. Conversely, a below-expected reading may prompt the Fed to hold rates steady or even cut, weakening the dollar.

If the CPI reading matches expectations, markets tend to hold steady temporarily, as there are no surprises forcing the Fed into immediate policy changes. In this case, the Fed will likely maintain a "wait-and-see" approach, and the dollar will trade in a relatively sideways range. Market reaction will then hinge on the tone of subsequent Fed statements.

Liquidity Levels
The WOB area represents external liquidity on the four-hour chart, from which prices are expected to reverse downward after reaching the initial targets. Subsequently, we anticipate a decline to support levels at 97.40, followed by 96.37.
The bearish scenario will be invalidated if the index reaches 99.40.