US Dollar Index Bounces Off the 100-Hour MA to Trade Above 106.570

The US dollar index bounced off the 100-hour moving average line to trade at about 106.578 after finding the trendline support. The USDX continues to trade within a gently ascending channel formation in the 60-min chart. 

However, the dollar currency index edged slightly lower late on to recover from the overbought conditions of the 14-hour RSI.

The US Dollar Index Fundamentals Overview

From a fundamental perspective, the US dollar currency index is trading at the back of a relatively busy period in the US market. On Friday, the US economy returned a positive new job count of 528k, more than doubling the average market forecast of 250k.

The sector also reported a relatively lower unemployment rate of 3.5%, down from June’s equivalent of 3.6%, and ahead of the expectation of 3.6%. On the other hand, the average wage growth grew by 5.2% from July last year, outperforming the expected growth rate of 4.9%, while the (MoM) equivalent beat 0.3% with 0.5%.

Earlier in the week, the initial jobless claims for the week ending July 29 missed the expected claim count of 259k with a higher tally of 260k, while the continuing claims for the preceding week also came short of 1.37 million with a claim count of 1.416 million.

The US Dollar Index Technical Analysis (the 60-min Chart)

Technically, the US dollar index seems to be trading within a gently ascending channel formation in the 60-min chart. This indicates a significant short-term bullish bias in the market sentiment.

Therefore, the bulls will be targeting short-term profits at about 107.180, or higher at 107.616. On the other hand, the bears will look to pounce on pullbacks at about 106.157, or lower at 105.676.

The US Dollar Index Technical Analysis (the Daily Chart)

In the daily chart, the DXY seems to be trading within an ascending channel formation. This indicates a significant long-term bullish bias in the market sentiment.

Therefore, the bulls will be looking to retain control of the USDX by targeting profits at about 108.005, or higher at 109.363. On the other hand, the bears will be targeting long-term profits at about 105.002, or lower at 103.572.

Copyright © 2022. All Rights Reserved. FXDailyReport.Com
Risk Warning: Trading CFDs is a high risk activity and you may lose more than your initial deposit. You should never invest money that you cannot afford to lose. FXDailyReport.com will not accept any liability for loss or damage as a result of reliance on the information contained within this website including data, quotes, charts and buy/sell signals. Please be fully informed regarding the risks and costs associated with trading the financial markets.