The US dollar index on Thursday pulled back off the trendline resistance at about 101.810 to trade at about 101.488 after the latest round of data. The dollar currency index trades within an ascending channel formation in the 60-min chart.
The USDX has now fallen to trade below the 100-hour moving average line. However, the DXY still seems to have a lot of room left to run before entering 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 initial jobless claims for the week ending April 21 outperformed the expected claim count of 248k with a lower tally of 230k.
The continuing claims also outshone the estimate of 1.878 million with a claim count of 1.858 million. The preliminary Q1 core personal consumption expenditures outperformed the (QoQ) expectation of 4.8% with a change of 4.9%. Personal consumption expenditure prices for the period also outshone 0.5% with a change of 4.2% QoQ.
Elsewhere, the preliminary annualised US gross domestic product for Q1 missed the expectation of 2% with a change of 1.1%, while the gross domestic product price index for the period beat 3.8% with a change of 4%. Elsewhere, pending home sales for March missed the (MoM) expectation of 0.5% with a change of -5.2%, while the (YoY) equivalent missed -22.8% with a change of -23.2%.
The US Dollar Index Technical Analysis (the 60-min Chart)
Technically, the US dollar index appears to be trading within an ascending channel formation in the 60-min chart. This indicates a significant short-term bullish bias in the market sentiment.
Therefore, the bulls will be looking to pounce on profits at about 101.656 or higher at 101.810. On the other hand, the bears will look to pounce on pullbacks at about 101.324 or lower at 101.171.
The US Dollar Index Technical Analysis (the Daily Chart)
In the daily chart, the US dollar currency index seems to be trading within a descending channel formation. This indicates a significant long-term bearish bias in the market sentiment.
Therefore, the bears will be targeting extended declines at about 100.850 or lower at 100.168. On the other hand, the bulls will be targeting long-term profits at about 102.093 or higher at 102.755.