The US dollar index on Friday pulled back off the session highs of about 103.82 to trade at about 103.38 following the latest round of data. The DXY appears to be about to complete an XABCD double-top reversal pattern formation in the 60-min chart.

Bitcoin has now plummeted to trade a few levels below the 100-hour moving average line. As a result, the USDX appears to be on the verge of entering the oversold levels of the 14-hour RSI.

The US Dollar Index Fundamentals Overview

From a fundamental perspective, the US dollar index is trading at the back of a relatively busy period in the US market. On Friday, the preliminary S&P Global Manufacturing PMI for November missed the expected reading of 49.8 with a reading of 49.4. On the other hand, the Services PMI for the period beat the forecast of 50.4 with a reading of 50.8, while the composite PMI remained unchanged at 50.7. 

Earlier in the week, the US durable goods orders for October missed the expectation of -3.1% with a change of -5.4%. The durable goods orders ex-transportation also fell short of the forecasted change of 0.1% with a change of 0%, while the nondefence capital goods orders missed 0.1% with a change of -0.1%.

Elsewhere, the initial jobless claims for the week ending November 17 outshone the expectation of 225k with a significantly lower claim count of 209k. The Michigan Consumer Sentiment Index for November also beat the expected reading of 60.5 with a reading of 61.3.

The US Dollar Index Technical Analysis (the 60-min Chart)

Technically, the US dollar index appears to be about to complete an XABCD double-top pattern formation in the 60-minute chart. The 14-hour RSI also seems to be on the verge of breaking into the oversold levels, indicating a bearish bias.

Therefore, the bears will be looking to extend the current pullback towards 103.18 or lower to 102.96. On the other hand, the bulls will look to pounce on rebounds at about 103.59 or higher at 103.82.

The US Dollar Index Technical Analysis (the Daily Chart)

In the daily chart, the US dollar currency index appears to be trading within a descending channel formation. The 14-day RSI also appears to support a bearish bias as it moves closer to the oversold levels.

Therefore, the bears will be looking to extend the current run of declines toward 102.91 or lower to 102.33. On the other hand, the bulls will be targeting long-term profits at about 103.87 or higher at 104.45.