The US dollar index on Wednesday extended declines to trade below 106.150 after the latest round of US data. The USDX continues to trade within a descending channel formation in the 60-min chart.
The dollar currency index has now fallen to trade below the 100-hour moving average line. As a result, the DXY is trading in the oversold conditions of the l14-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 Wednesday, the durable goods orders for October outperformed the expected change of 0.4% with a change of 1%. On the other hand, durable goods orders ex-defence beat the forecasted change of -0.1% with a change of 0.8% while durable goods orders ex-transportation outshone 0% with a change of 0.5%. Elsewhere, nondefense capital goods orders for the period beat the expected change of 0% with a change of 0.7%.
The initial jobless claims for last week failed to match the expected claim count of 225k with a higher tally of 240k. The Michigan Consumer Settlement Index for November beat the expected reading of 55 with 56.8, while new home sales for October outperformed the expected tally of 0.57 million with a higher reading of 0.632 million. Elsewhere, the preliminary S&P Global PMIs missed expectations on all counts.
The US Dollar Index Technical Analysis (the 60-min Chart)
Technically, the US dollar currency index appears to be trading within a descending channel formation in the 60-min chart. This indicates a significant short-term bearish bias in the market sentiment.
Therefore, the bears will be looking to extend the current declines toward 105.340 or lower to 104.552. On the other hand, the bulls will be targeting short-term profits at about 107.010 or higher at 107.752.
The US Dollar Index Technical Analysis (the Daily Chart)
In the daily chart, the US dollar currency index appears to be trading within a sharply descending channel formation. This indicates a strong long-term bearish bias in the market sentiment.
Therefore, the bears will be looking to extend the current decline toward 103.596 or lower to 101.124. On the other hand, the bulls will be targeting long-term profits at about 108.567 or higher at 110.837.