On Friday, the US dollar index pulled back from the session highs of about 103.06 to trade at about 102.54, after US data. The DXY trades within a descending channel formation in the 60-minute chart.
The US dollar currency index has now fallen to trade a few levels below the 100-hour moving average line. As a result, the USDX is on the verge of entering the oversold levels 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 Friday, US building permits for July missed the expectation of 1.43 million with 1.396 million, while housing starts for the month fell short of 1.33 million with a tally of 1.238 million. Elsewhere, the preliminary Michigan Consumer Sentiment index for August outshone the forecasted reading of 66.9 with a reading of 67.8.
Earlier in the week, US retail sales for July outperformed the expectation of 0.3% with a change of 1% (MoM). The retail sales ex-autos also exceeded the (MoM) forecast of 0.1% with a change of 0.4%, while the initial jobless claims for the week ending August 9 came in better than expected with 227k versus a forecasted claim count of 235k.
The NY Empire State Manufacturing Index for August came in better than expected at -4.7 versus a forecast of -6, while the Philadelphia Fed manufacturing Survey for the month missed the expectation of 7 with -7. US industrial production for July also fell short of the forecasted (MoM) change of -0.3% with a change of -0.6%.
The US Dollar Index Technical Analysis (the 60-min Chart)
Technically, the dollar currency index trades within a descending channel formation in the 60-minute chart. The 14-hour RSI has also fallen to move closer to oversold conditions, supporting a bearish bias.
Therefore, the bears will stretch the current decline run toward 102.27 or lower to 102.01. On the other hand, the bulls will look to pounce on rebounds at about 102.81 or higher at 103.06.
The US Dollar Index Technical Analysis (the Daily Chart)
In the daily chart, the USDX trades within a descending channel formation. After falling closer to oversold conditions, the 14-day RSI also seems to support a long-term bearish bias.
Therefore, the bears will be targeting long-term profits at about 101.63 or lower at 100.84. On the other hand, the bulls will look to pounce on profits at about 103.30 or higher at 104.07.