The US dollar index on Thursday fell to trade at a new weekly low of about 103.563 following the latest round of US data. The dollar currency index appears to be trading within a sharply descending channel formation in the 60-min chart.

The USDX has now plummeted to trade several levels below the 100-hour moving average line. As a result, the DXY has descended into the oversold levels of the 14-hour RSI.

The US Dollar Index Fundamentals Overview

From a fundamental perspective, the US dollar index is trading at the back of a relatively busy period in the US market. On Thursday, the ISM Manufacturing PMI for May missed the expected reading of 47 with a reading of 46.9. On the other hand, the ISM Manufacturing Prices Paid fell short of 52 with a reading of 44.2, while the ISM Manufacturing New Order Index missed 44.9 with a reading of 42.6. The ISM Manufacturing Employment Index beat the expectation of 49.8 with a reading of 51.4. The initial jobless claims for the period also outshone the forecasted claim count of 235k with a  slightly lower tally of 232k.

Elsewhere, the ADP Employment Change for May outperformed the expected job count of 170k with a higher tally of 278k. Nonfarm productivity for Q1 beat the estimated change of -2.4 with a change of -1.2%, while unit labour costs for the period missed the forecasted 6% with a change of 4.2%. Earlier in the week, the Chicago Purchasing Managers’ Index for May missed the estimated reading of 47 with a reading of 40.4.

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

Technically, the USDX seems to be trading within a sharply descending channel formation in the 60-min chart. This indicates a strong short-term bearish bias in the market sentiment.

Therefore, the bears will be targeting extended declines at about 103.402 or lower at 103.247. On the other hand, the bulls will look to pounce on rebounds at about 103.720 or higher at 103.875.

The US Dollar Index Technical Analysis (the Daily Chart)

In the daily chart, the US dollar currency index appears 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 ride the current run of gains toward 104.065 or higher at 104.741. On the other hand, the bears will be targeting long-term profits at about 102.916 or lower at 102.206.