The US dollar index on Friday pulled back off the 100-hour moving average line before finding strong trendline support at about 110.800. The USDX continues to trade within an ascending channel formation in the 60-min chart.
The dollar currency index now appears to be trading just beneath the 100-hour MA following the pullback. Friday’s pullback also prevented the DXY from ascending into 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 market. On Friday, the US personal consumption expenditures price index for September missed the expected (YoY) change of 5.2% with a change of 5.1%. The (MoM) equivalent was in line with the forecast of 0.5%.
On the other hand, personal income for the period outshone the market estimate of 0.3% with a change of 0.4% (MoM), while personal spending beat the forecast of 0.4% with a change of 0.6%. Elsewhere, the Michigan Consumer Sentiment Index for October outperformed the expectation of 59.8 with a reading of 59.9, while pending home sales for September missed the forecast of -5% with a change of -10.2% (MoM).
Earlier in the week, US durable goods orders for September missed the expectation of 0.6% with a change of 0.4%, while the annualised GDP for Q3 outperformed the forecasted change of 2.4% with a change of 2.6%. Nondefense capital goods orders for September came short of 0.5% with a change of -0.7%.
The US Dollar Index Technical Analysis (the 60-min Chart)
Technically, the dollar currency index appears to be trading within a sharply ascending channel formation in the 60-min chart. This indicates a strong short-term bullish bias in the market sentiment.
Therefore, the bulls will be looking to stretch the current gains toward 111.150 or higher to 111.610. On the other hand, the bears will look to pounce on potential pullbacks at about 110.506 or lower at 110.114.
The US Dollar Index Technical Analysis (the Daily Chart)
In the daily chart, the US dollar currency index seems 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 targeting long-term profits at about 109.578 or lower at 107.797. On the other hand, the bulls will look to pounce on rebounds at about 112.221 or higher at 113.887.