On Friday, the US dollar index bounced from the session lows of about 97.63 to trade at about 98.00 after the latest US data. The DXY trades within a gently descending channel formation in the 60-minute chart.
The dollar currency index continues to trade slightly below the 100-hour moving average line, despite the rebound. However, the rebound helped the USDX recover from the oversold levels of the 14-hour RSI.
The US Dollar Index Fundamentals Overview
From a fundamental perspective, the US dollar index trades during a relatively busy period in the US market. On Thursday, the initial jobless claims for last week came in better than expected, with 207k versus a forecast of 215k, down from the previous week’s claim count of 218k.
On the other hand, the industrial production for March fell short of the forecasted (MoM) change of 0.1%, with a change of -0.5%. The Philadelphia Fed Manufacturing Survey for April rose to 26.7, up from 18.1 in March, beating the forecast of 10, while the NY Empire State Manufacturing Index for the month outshone the expectation of -0.5, with a reading of 11, up from -0.2.
Earlier in the week, the US producer price index for March missed the expected (MoM) change of 1.2%, with a change of 0.5%. The (YoY) equivalent also fell short of 4.6%, with a change of 4%. On the other hand, the producer price index ex-food and energy for the period failed to match the forecasted (MoM) and (YoY) changes of 0.6% and 4.2%, respectively, with changes of 0.1% and 3.8%.
The US Dollar Index Technical Analysis (the 60-min Chart)
Technically, the US dollar currency index trades within a descending channel formation in the 60-minute chart. However, the 14-hour RSI has recently bounced back to recover from oversold conditions.
Therefore, the bulls will look to extend the latest rebound towards 98.33 or higher to 98.69. On the other hand, the bears will look to pounce on profits at about 97.63 or lower at 97.25.
The US Dollar Index Technical Analysis (the Daily Chart)
In the daily chart, the US dollar currency index trades within a sharply descending channel formation. The 14day RSI also supports a bearish bias after pulling back to avoid rallying into overbought conditions.
Therefore, the bears will look to stretch the current pullback towards 96.79 or lower to 95.59. On the other hand, the bulls will look to pounce on rebounds at about 99.20 or higher at 100.36.