The U.S. dollar pulled back a few of its weekly gains after an advance GDP reading disenchanted market expectations.

Are we taking a look at a possibility to purchase the Greenback at lower levels?

We’re zooming in on the 4-hour chart to envision out a variety setup:

U.S. Dollar Index (DXY) 4-hour Forex Chart by TV

In case you missed it, the U.S. dollar had a powerful begin to the week as rising U.S. bond yields and speculations of sticky high inflation (and better for longer Fed rates of interest) under a Trump presidency pushed the U.S. dollar higher.

The Greenback has given up a few of its gains, nevertheless, thanks partly to uncertainty ahead of the U.S. elections and a surprisingly weak advance Q3 GDP report.

Do not forget that directional biases and volatility conditions in market price are typically driven by fundamentals. For those who haven’t yet done your fundie homework on the U.S. dollar, then it’s time to envision out the economic calendar and stay updated on each day fundamental news!

The U.S. Dollar Index (DXY) recently retested Friday’s lows near 104.00, but additionally found buying pressure across the psychological area.

Be careful for more green candlesticks above 104.00, which is near the Pivot Point line (104.10) and range support area within the 4-hour chart. Further gains could bump DXY as much as the 104.30 mid-range levels if not the 104.60 previous high and range resistance zone.

But what if U.S. dollar bears are only taking a breather?

If DXY makes latest weekly lows and consistently trades below the range support, then we could see increased odds of a longer-term bearish reversal for the Greenback.

Look out for sustained trading below 104.00, which can drag DXY to the 103.60 S1 levels or 103.50 area of interest near the 100 SMA.

Good luck and good trading this setup!