The US dollar index on Friday fell to a new 7-week low of about 102.37 before bouncing back to trade at about 102.72. The DXY continues to trade within a descending channel formation in the 60-minute chart.

The dollar currency index has now fallen to trade below the 100-hour moving average line. However, Friday’s late rebound helped the USDX to recover from the oversold levels of the 14-hour RSI.

The US Dollar Index Fundamentals Overview

From a fundamental perspective, the dollar currency index is trading at the back of a relatively busy period in the US market. On Friday, the US nonfarm payrolls for February outperformed the expected job count of 200k with a significantly higher tally of 275k.

The average hourly wage for the month missed the expectations of 0.3% (MoM) and 4.4% (YoY), with changes of 0.1% and 4.3%, respectively. The unemployment rate for the period edged higher to 3.9% from 3.7% in January, missing the forecasted rate of 3.7%. 

On Thursday, the initial jobless claims for last week missed the expected claim count of 215k with a slightly higher tally of 217k. Unit labour costs for Q4 also failed to match the expected change of 0.6% with a change of 0.4%, while nonfarm productivity for the quarter outshone the estimate of 3.1% with a change of 3.2%.

Earlier in the week, the ADP employment change for February fell short of the forecasted change of 150k with a tally of 140k, while the JOLTS job opening for January missed 8.9 million with 8.863 million.

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-minute chart. However, the 14-hour RSI has recently bounced back to recover from oversold conditions.

Therefore, the bulls will be targeting extended rebounds at about 103.04 or higher at 103.32. On the other hand, the bears will look to ride the current run of declines toward 102.37 or lower to 102.06.

The US Dollar Index Technical Analysis (the Daily Chart)

In the daily chart, the dollar currency index appears to be trading within a descending channel formation. The 14-day RSI also seems to support a long-term bearish bias as it moves closer to oversold conditions.

Therefore, the bears will be targeting extended declines at about 101.66 or lower at 100.58. On the other hand, the bulls will look to pounce on rebounds at about 103.94 or higher at 104.93.