The US Dollar Index on Friday extended the current monthly declines to 91.50 after the announcement of week US consumer sentiment index data. The USDX continues to trade within a descending channel formation in the 60-min chart.
It has now fallen several levels below the 100-hour and the 200-hour SMA lines. Friday’s extended declines pushed the dollar currency index closer to the oversold levels of the 14-hour RSI. This could trigger a short-term rebound.
The US Dollar Index Fundamentals Overview
From a fundamental perspective, the USDX is trading at the back of a relatively busy period in the US market. On Friday, the preliminary Michigan Consumer Sentiment Index (CSI) for April missed the expectation of 89.6 with 86.5. Earlier in the day, building permits for March beat the expectations of 1.75 million (MoM) with 1.766 million. Housing starts for the month also outperformed the (MoM) expectation of 1.613 million with 1.739 million. On Thursday, the Retail Sales control group for March beat the expected change of 6.3% with a change of 6.9%. General retail sales also outperformed the (MoM) expectation of 5.9% with a change of 9.8%.
Earlier in the week, The US Consumer Price Index ex-food and energy beat the (YoY) expectation of 1.55 with a change of 1.6%. The (MoM) equivalent also outperformed the expected change of 0.2% with 0.3%. The initial jobless claims for the week ending April 9 beat 700k with 576kwhile continuing claims for the preceding week missed 3.7M with 3.731M.
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 the 60-min chart. This indicates a significant short-term bearish bias in the market sentiment.
The bears will be looking to extend the current run towards 91.29 or lower to 91.06. On the other hand, the bulls will target short-term rebound profits at around 91.79 or higher at 91.03.
The US Dollar Index Technical Analysis (the Daily Chart)
In the daily chart, the US dollar index appears to be trading within an ascending channel formation. This indicates a significant long-term bullish bias in the market sentiment. It has recently pulled back towards oversold levels of the 14-day RSI.
The bulls will be targeting long-term profits at around 92.69 or higher at the 61.80% fib level at 93.90. On the other hand, the bears will target profits at around 90.30 or lower at 89.02.