On Friday, the US dollar index pulled back off the session highs of about 100.98 to trade at about 100.59 before bouncing back to 100.78. The DXY trades within a sideways channel formation in the 60-minute chart. 

The late rebound pushed the dollar currency index next to the 100-hour moving average line. As a result, the USDX still seems to have a lot of room left to run on either side of the 14-hour RSI.

The US Dollar Index Fundamentals Overview

From a fundamental perspective, the USDX trades during a relatively busy period in the US market. On Thursday, the initial jobless claims for the week ending September 13 edged significantly lower to 219k, down from 231k, beating the forecasted claim count of 230k.

The Philadelphia Fed Manufacturing Survey for September also improved to 1.7, up from -7, exceeding the forecast of -1. On the other hand, the existing home sales change for August delivered a (MoM) change of -2.5% compared to a change of 1.5% in the preceding month.

Earlier in the week, the Federal Reserve lowered the base interest rate by 50 basis points to 5%, down from 5.5%. The market was expecting a rate cut of 25 basis points to 5.25%. Elsewhere, building permits for August came in better than expected with 1.475 million versus a forecast of 1.41 million, while housing starts for the period outshone the estimate of 1.31 million with 1.356 million.

US retail sales for August also exceeded expectations of -0.2% with a change of 0.1% (MoM), while the retail sales ex-autos missed 0.2% with a change of 0.1% (MoM).

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. The 14-hour RSI also seems to have a lot of room left to run on either side of the indicator.

Therefore, the bulls will be targeting potential upward movements at about 100.98 or higher at 101.19. On the other hand, the bears will look to pounce on profits at about 100.59 or lower at 100.39.

The US Dollar Index Technical Analysis (the Daily Chart)

In the daily chart, the US dollar currency index trades within a descending channel formation. The 14-day RSI also supports a bearish bias as it moves closer to oversold conditions.

Therefore, the bears will be looking to stretch the current decline towards 99.59 or lower to 98.30. On the other hand, the bulls will look to pounce on rebounds at about 101.84 or higher at 103.09.