On Friday, the US dollar index pulled back from the session highs of about 101.13 to trade at about 100.77 after the latest US data. The DXY trades within an ascending channel formation in the 60-minute chart.

The dollar currency index continues to trade at several levels above the 100-hour moving average line, despite the latest pullback. Friday’s pullback helped the USDX recover from 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 Thursday, the initial jobless claims for last week came in worse than expected, with 226k versus a forecast of 225k, down from the previous week’s claim count of 230k. On the other hand, the Philadelphia Fed Manufacturing Survey for June improved to 10.3, up from -0.4 in May, beating the forecasted reading of 10. 

On Wednesday, the Federal Reserve kept the base interest rate unchanged at 3.75% as expected. On the other hand, the retail sales for May outshone the forecasted (MoM) change of 0.5%, with a change of 0.9%, while the retail sales ex-autos beat 0.5%, with a change of 0.8% (MoM). The pending home sales for the month also came in better than expected, with a (MoM) change of 3.8% versus a forecast of 0.8%.

Earlier in the week, building permits for May fell to 1.413 million, down from 1.423 million in April, missing the forecasted tally of 1.42 million. The housing starts for the period also missed the expectation of 1.43 million, with a tally of 1.177 million, down from the preceding month’s equivalent of 1.392 million.

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

Technically, the US dollar index trades within an ascending channel formation in the 60-minute chart. However, the 14-hour RSI has recently pulled back to recover from overbought conditions.

Therefore, the bears will look to stretch the latest pullback towards 100.45 or lower to 100.05. On the other hand, the bulls will look to pounce on profits at about 101.13 or higher at 101.48.

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. The 14-day RSI also supports a long-term bullish bias as it edges closer to overbought conditions.

Therefore, the bulls will look to extend the current run of gains toward 101.99 or higher to 103.40. On the other hand, the bears will look to pounce on pullbacks at about 99.42 or lower at 97.95.