The U.S. Dollar Index is moving sideways on the 1-hour timeframe with a bearish bias.

Despite this, prices are still trading within the sideways range that began on Monday, with Wednesday's session ending around the 96.80 level.
The market is currently forming liquidity zones ahead of the release of today’s U.S. employment report.
On the daily timeframe, we observe a DVIM liquidity area, which is a key zone on the higher timeframe.

What is the expected impact of the U.S. employment data?

This report is considered one of the most important economic releases, providing a clear view of the strength of the U.S. economy.
It should be noted that the result released by ADP does not necessarily reflect the actual number of jobs that will be announced by the U.S. Bureau of Labor Statistics.
Therefore, it is recommended not to enter any trades before the official data is released.

Liquidity Levels:

The price has formed liquidity levels around 97.15, in addition to higher liquidity near 97.60.
These zones are considered strong resistance areas from which the price may reverse to the downside.
We will be looking for a sell signal if the price rises toward either of these levels.

In case of a break below 96.40:

If the price breaks below 96.40 and holds beneath it, further downside is expected toward 96.00, followed by 95.65.

Stop loss for the bearish scenario:

A 4-hour candle close above 97.70 would invalidate the bearish outlook.