On Friday, the US dollar index pulled back from the session highs of about 100.86 to trade at about 100.74 after the latest US data. The DXY trades within an ascending channel formation in the 60-minute chart.
The dollar currency index has now fallen to trade a few levels below the 100-hour moving average line. As a result, the USDX avoided rallying into the overbought levels of the 14-hour RSI.
The US Dollar Index Fundamentals Overview
From a fundamental perspective, the US dollar currency index trades during a relatively busy period in the US market. On Friday, the US industrial production for June missed the expected (MoM) change of 0.2%, with a change of 0.1%. On the other hand, the preliminary Michigan Consumer Sentiment Index for July came in better than expected, at 54.4 versus a forecast of 51, up from the previous month’s equivalent of 49.5.
Elsewhere, the US building permits for June missed the expectation of 1.4 million, with a tally of 1.367 million, down from the previous month’s equivalent of 1.41 million. Housing starts for the period outshone the forecasted tally of 1.31 million, with 1.427 million, up from 1.199 million in May.
On Thursday, the US initial jobless claims for last week fell to 208k, down from the preceding week’s equivalent of 216k, and better than the forecasted claim count of 217k. The Philadelphia Fed Manufacturing Survey for July also came in better than expected, with 41.4 versus a forecast of 13, up from the previous month’s equivalent of 10.3.
On the other hand, the US retail sales for June matched the forecasted (MoM) change of 0.2%. The retail sales control group for the month delivered a change of 0.5% as expected, while the retail sales ex-autos missed the forecast of -0.1%, with a change of -0.2% (MoM).
The US Dollar Index Technical Analysis (the 60-min Chart)
Technically, the US Dollar Index trades within an ascending channel formation on 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 latest pullback towards 100.62 or lower to 100.47. On the other hand, the bulls will look to pounce on profits at about 100.86 or higher at 101.00
The US Dollar Index Technical Analysis (the Daily Chart)
In the daily chart, the US dollar currency index also trades within an ascending channel formation. However, the 14-day RSI has recently pulled back to recover from overbought conditions.
Therefore, the bears will look to extend the current pullback towards 100.17 or lower to 99.63. On the other hand, the bulls will look to pounce on profits at about 101.32 or higher at 101.79.