On Friday, the US dollar index pulled back from the session highs of about 101.32 to trade at about 101.01 after the latest US data. The DXY trades within an ascending channel formation on the 60-minute chart.
The dollar currency index continues to trade slightly above the 100-hour moving average line, despite the pullback. The USDX bounced back slightly to avoid falling into 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 Michigan Consumer Sentiment Index for September rose to 48.1, up from 47.8, beating the forecast of 47.6. On the other hand, the UoM 1-year consumer inflation expectation matched the forecast of 4.6%, unchanged from August. The UoM 5-year consumer inflation expectation for the period also remained unchanged at 3.4%, as expected.
Elsewhere, the US durable goods orders for August came in better than expected, with a change of 0% versus a forecast of -0.4%. On the other hand, the US durable goods orders ex-transportation missed the expected change of 0.6%, with a change of 0.3%, while the nondefense capital goods orders ex-aircraft outshone the forecast of 0.5%, with a change of 1.6%.
On Thursday, the US initial jobless claims for last week fell to 197k, down from the preceding week’s equivalent of 198k, beating the forecast claim count of 201k. Earlier in the week, the preliminary S&P Global Manufacturing PMI for September beat 53.5, with a reading of 57. The preliminary S&P Global Services PMI for the month also outshone the estimate of 56, with a reading of 58.7.
The US Dollar Index Technical Analysis (the 60-min Chart)
Technically, the US dollar index trades within an ascending channel formation on 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 100.70 or lower, to 100.36. On the other hand, the bulls will look to pounce on rebounds at about 101.32 or higher, at 101.67.
The US Dollar Index Technical Analysis (the Daily Chart)
In the daily chart, the US dollar currency index trades within an ascending channel formation. The 14-day RSI also supports a long-term bullish bias as it edges closer to overbought conditions.
Therefore, the bulls will look to extend the current rebound towards 101.98 or higher, to 103.02. On the other hand, the bears will look to pounce on pullbacks at about 100.00 or lower, at 98.91.