Is the US Dollar Index currently going through a downtrend?

Is the US Dollar Index currently going through a downtrend?

• Daily Chart Overview
• 4-Hour Chart Overview

Following the recent Federal Reserve meeting, where expectations for 2025 interest rate cuts were adjusted from three to two, the US Dollar Index surged by approximately 1.28%. 
But what are the technical scenarios shaping its next moves?

On the daily chart (Figure 1), the US Dollar Index remains in an overall uptrend, recently hitting a higher peak at 108.070. The daily trading range lies between 108.285, marking the higher high and resistance level, and 105.370, the higher low and support level. Traders might watch for a pullback near 106.015 before a potential continuation of the long-term uptrend.

Figure 1: Dollars Index, Daily Chart, Trading View

On the 4-hour chart (Figure 2), the U.S Dollars index is experiencing a general downtrend, forming a new bottom. A rise to 108.200 could face selling pressure, possibly leading to a continuation of the downward move. Key targets for this US dollar index downtrend include 107.540 as the first level and 106.015 as the longer-term target.
However, the negative outlook on the 4-hour chart becomes invalid if the price breaks above 108.285, forming a new higher peak.

Figure 2: Dollars Index, 4H Chart, Trading View

In summary, the dollar index downtrend on the 4-hour chart appears to be a corrective wave within the broader uptrend seen on the daily chart.