The US Dollar Index on Friday bounced off the key support level around 92.35 to trade above 92.64 after the latest round of US data. The dollar currency index continues t trade within an ascending channel formation in the 60-min chart.
The USDX has now surged above the 100-hour moving average following Friday’s gains. However, it still has room left to run before hitting the overbought levels of the 14-hour RSI. Therefore, the current rebound could continue through next week.
The US Dollar Index Fundamentals Overview
From a fundamental perspective, the DXY is trading at the back of a relatively quiet period in the US market. On Friday, the US producer price index ex-food and energy for August beat the expected (YoY) change of 6.6% with a change of 6.7%. The (MoM) equivalent also outshone the expectation of 0.5% with 0.6%. On the other hand, the general producer price index for the period beat the (MoM) estimate of 0.6% with 0.7% while the (YoY) equivalent outperformed 8.25 with 8.3%. Wholesale inventories for July increased by 0.6% (MoM) in line with expectations.
Earlier in the week, the US initial jobless claims for the week ending September 3 beat the expected claim count of 335k with a tally of 310k. On the other hand, continuing claims for the preceding week missed 2.744 million with a higher count of 2.783 million. Elsewhere, JOLTs job openings for July outperformed the expected tally of 10 million with 10.934 million, while consumer credit change missed the estimate of $25 billion with $17 billion.
The US Dollar Index Technical Analysis (the 60-min Chart)
Technically, the USDX appears to be trading within an ascending channel formation in the 60-min chart. The dollar currency index also seems to have recently bounced off the trendline support after a significant pullback.
Therefore, the bulls will be looking to ride the current bull-run by targeting profits at approximately 92.88 or higher at 93.14. On the other hand, the bears will look to pounce for pullbacks at 92.37 or lower at 92.09.
The US Dollar Index Technical Analysis (the Daily Chart)
In the daily chart, the US dollar currency index appears to be trading within a gently descending channel formation. The DXY has also bounced back, avoiding retesting the 100-day moving average.
Therefore, the bulls will be targeting long-term profits at approximately 93.76 or higher at 94.65. On the other hand, bears will look to pounce on potential pullback profits at 91.75 or lower at 90.81.