On Friday, the US dollar index pulled back from the session highs of about 99.89 to trade at about 99.73 after the latest US data. The DXY trades within a descending channel formation in the 60-minute chart.

The dollar currency index continues to trade a few levels below the 100-hour moving average line, after the pullback. However, the USDX still has room left to run before reaching 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 Expectations Index for June outperformed the forecast of 44.3, with a reading of 49.3, up from the previous month’s equivalent of 44.1. The preliminary Michigan Consumer Sentiment Index for the period also rose to 48.9, up from 44.8, beating the forecasted reading of 46. 

Earlier in the week, the US consumer price index for May matched the expected (MoM) and (YoY) changes of 0.5% and 4.2%, respectively. The consumer price index ex-food and energy for the period was also in line with the estimated (YoY) change of 2.9%. However, the (MoM) equivalent fell short of 0.3%, with a change of 0.2%.

Elsewhere, the producer price index for May beat the (MoM) forecast of 0.7%, with a change of 1.1%, while the (YoY) equivalent outshone the estimate of 6.4%, with a change of 6.5%. The producer price index ex-food and energy missed the (MoM) and (YoY) forecasts of 0.5% and 5.4%, respectively, with changes of 0.4% and 4.9%.

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

Technically, the US dollar index trades within a descending channel formation in the 60-minute chart. However, the 14-hour RSI has recently bounced back to avoid falling into oversold conditions.

Therefore, the bulls will look to extend the latest rebound towards 99.89 or higher to 100.09. On the other hand, the bears will look to pounce on profits at about 99.52 or lower at 99.30.

The US Dollar Index Technical Analysis (the Daily Chart)

In the daily chart, the US dollar currency index trades within an ascending channel formation. However, the 14-day RSI has recently pulled back to avoid entering overbought conditions.

Therefore, the bears will look to stretch the current pullback towards 99.07 or lower to 98.43. On the other hand, the bulls will look to pounce on profits at about 100.28 or higher at 100.89.