On Friday, the US dollar index bounced back from the session lows of about 103.09 to trade at about 103.37 after the latest US data. The DXY trades within an ascending channel formation on the 60-minute chart.

The dollar index continues to trade several levels above the 100-hour moving average line after the rebound. As a result, the USDX is on the verge of re-entering the overbought 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 US producer price index for October fell to 0.3%, down from 1.4% in September, and below the forecast (MoM) change of 0.4%. The (YoY) equivalent also fell below forecasts, at 6.5% versus 6.6%, despite rising from the previous month’s equivalent of 6.3%. On the other hand, the producer price index ex-food and energy for the month declined significantly to 0.3%, down from 0.8%, in line with expectations. The (YoY) equivalent remained steady at 5%, also as expected. 

On Thursday, the US initial jobless claims for last week increased significantly to 200k, up from the previous week’s equivalent of 191k, and above the forecast claim count of 195k. On the other hand, the monthly budget statement for October fell to $-404.1 billion, down from $27 billion in September, missing the forecast of $-298.6 billion. Elsewhere, the existing home sales change for October fell to -5.5% (MoM), down from the previous update of 1%.

Earlier in the week, the US consumer price index for October fell to 0.4% (MoM), down from 0.6% in September, but still above the forecast rate of 0.3%. On the other hand, the consumer price index ex-food and energy for the period remained steady at 0.3% (MoM), ahead of the forecast rate of 0.2%.

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. The 14-hour RSI has also recently bounced back in an attempt to re-enter overbought conditions.

Therefore, the bulls will look to extend the current rebound towards 103.63 or higher, up to 103.91. On the other hand, the bears will look to pounce on pullbacks at about 103.09 or lower, down to 102.81.

The US Dollar Index Technical Analysis (the Daily Chart)

In the daily chart, the US dollar index also trades within an ascending channel formation. The 14-day RSI has also recently bounced back to move closer to overbought conditions. 

Therefore, the bulls will look to stretch the latest rebound towards 104.50 or higher, up to 105.62. On the other hand, the bears will look to pounce on pullbacks at about 102.23 or lower, down to 101.08.