On Friday, the US dollar index bounced back from the session lows of about 101.90 to trade at about 102.15 after the latest US data. The DXY trades within a slightly ascending channel formation on the 60-minute chart.

Friday’s rebound pushed the US dollar index to trade around the 100-hour moving average line. However, the USDX still has plenty of room left to run before reaching the overbought levels of the 14-hour RSI.

The US Dollar Index Fundamentals Overview

From a fundamental perspective, the dollar currency index trades during a relatively busy period in the US market. On Thursday, US wholesale inventories for August came in better than expected, at 0.5% versus a forecast of 0.7%. The initial jobless claims for last week also outperformed the forecast claim count of 200k, with 197k, down from the previous week’s revised figure of 199k. 

On the other hand, the continuing claims for the preceding four weeks increased to 1.716 million, up from 1.699 million, missing the forecast claim count of 1.71 million. On Wednesday, the US consumer credit change for August missed the expected change of $15 billion, with $8.28 billion, down from the previous month’s equivalent of $17.74 billion.

Earlier in the week, the US ISM Services PMI for September missed the expected reading of 55, with a reading of 54.9, down from the previous month’s equivalent of 55.4. On the other hand, the S&P Global Composite PMI for the month remained unchanged at 58.4, in line with forecasts. Elsewhere, the US goods and services trade balance for August missed expectations of $-102 billion, at $-105.6 billion, down from the previous month’s equivalent of $-92.8 billion. 

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. The 14-hour RSI has also recently bounced back to avoid falling into oversold conditions.

Therefore, the bulls will look to extend the current rebound towards 102.42 or higher, up to 102.67. On the other hand, the bears will look to pounce on pullbacks at about 101.90 or lower, down to 101.63.

The US Dollar Index Technical Analysis (the Daily Chart)

In the daily chart, the US dollar index trades within a sharply ascending channel formation. However, the 14-day RSI has recently pulled back in an attempt to recover from overbought conditions.

Therefore, the bears will look to extend the current pullback towards 100.97 or lower, down to 99.65. On the other hand, the bulls will look to pounce on extended gains at about 103.39 or higher, up to 104.67.