On Friday, the US dollar index pulled back from the session highs of about 100.38 to trade at about 100.16 after the latest data. The DXY trades within a sideways channel formation in the 60-minute chart.
The US dollar currency index continues to trade a few levels above the 100-hour moving average line, despite the pullback. As a result, the USDX still has room left to run before reaching the oversold levels of the 14-hour RSI.
The US Dollar Index Fundamentals Overview
From a fundamental perspective, the US dollar index trades during a relatively busy period in the U.S. market. On Friday, the UoM 1-year consumer inflation expectation for November missed the expectation of 4.7%, with 4.5%. The UoM 5-year consumer inflation expectation for the period also fell short of 3.6%, with 3.4%.
On the other hand, the Michigan Consumer Sentiment Index for the month outperformed the forecast of 50.5, with a reading of 51, while the Michigan Consumer Expectations Index beat 49 with a reading of 51. The preliminary S&P Global manufacturing PMI for November came in lower than expected, with 51.9 versus a forecast of 52, while the preliminary S&P Global Services PMI for the period beat 54.8, with a reading of 55.
On Thursday, the U.S. jobs data for September exceeded the expectation of 50k, with a tally of 119k. On the other hand, the unemployment rate for the period failed to match the forecast of 4.3%, with 4.4%. The average hourly wage growth outshone the expected (YoY) change of 3.7%, with a change of 3.8%. The (MoM) equivalent fell short of expectations, with 0.2% versus a forecast of 0.3%.
The US Dollar Index Technical Analysis (the 60-min Chart)
Technically, the US dollar index trades within a sideways channel formation in the 60-minute chart. However, the 14-hour RSI has recently pulled back to avoid rallying into overbought conditions.
Therefore, the bears will look to stretch the current pullback towards 99.93 or lower to 99.73. On the other hand, the bulls will look to pounce on profits at about 100.38 or higher at 10.57.
The US Dollar Index Technical Analysis (the Daily Chart)
In the daily chart, the US dollar index trades within an ascending channel formation. The 14-day RSI also supports a long-term bullish bias as it edges closer to overbought conditions.
Therefore, the bulls will look to ride the current run of gains toward 100.81 or higher to 101.39. On the other hand, the bears will look to pounce on pullbacks at about 99.54 or lower at 98.99.