On Friday, the US dollar index pulled back from the session highs of about 97.99 to trade at about 97.60 after the latest US data. The DXY trades within an ascending channel formation in the 60-minute chart.
The US dollar currency index continues to trade slightly above the 100-hour moving average line despite the latest pullback. Friday’s pullback pushed the USDX closer to the oversold levels of the 14-hour RSI.
The US Dollar Index Fundamentals Overview
From a fundamental perspective, the US dollar currency index trades during a relatively busy period in the US market. On Friday, the preliminary Michigan Consumer Sentiment Index for February outperformed the expectation of 55, with a reading of 57.3, up from 56.4 in January.
On Thursday, the US initial jobless claims for last week fell short of the forecasted claim count of 212k, with a tally of 231k, up from the previous week’s equivalent of 209k. On the other hand, the JOLTS job openings for December missed the expectation of 7.2 million, with a tally of 6.542 million, down from 6.928 million in November.
Earlier in the week, the US ADP employment change for January fell to 22k, down from 37k in December, missing the forecasted change of 48k. On the other hand, the ISM Services PMI for January exceeded the expectation of 53.5, with a reading of 53.8, unchanged from December.
The ISM Services Employment Index for the period fell short of the forecasted reading of 52.3, with a reading of 50.3, down from 51.7. The S&P Global Composite PMI for the month beat the estimate of 52.5, with a reading of 52.7, unchanged from December.
The US Dollar Index Technical Analysis (the 60-min Chart)
Technically, the US dollar index trades within an ascending channel formation in the 60-minute chart. However, the 14-hour RSI has recently pulled back to move closer to oversold conditions.
Therefore, the bears will look to stretch the latest pullback towards 97.11 or lower to 96.70. On the other hand, the bulls will look to pounce on rebounds at about 97.99 or higher at 98.41.
The US Dollar Index Technical Analysis (the Daily Chart)
In the daily chart, the US dollar currency index trades within a sideways channel formation. However, the 14-day RSI has recently bounced back to avoid falling deeper into oversold conditions.
Therefore, the bulls will look to extend the latest rebound towards 99.79 or higher to 101.08. On the other hand, the bears will look to pounce on profits at about 95.65 or lower at 93.79.