The US dollar index on Friday pulled back off the session highs of about 103.71 to trade at about 103.36 after the latest round of data. The DXY continues to trade within a choppy ascending channel formation in the 60-minute chart.

The US dollar currency index has now fallen to trade slightly below the 100-hour moving average line. However, the USDX still has some room left to run before reaching the oversold conditions of the 14-hour RSI.

The US Dollar Index Fundamentals Overview

From a fundamental perspective, the US dollar index is trading at the back of a relatively busy period in the US market. On Friday, the US core personal consumption expenditures price index for December missed the expected (YoY) change of 3% with a change of 2.9%. The (MoM) equivalent was in line with the estimate of 0.2%.

On the other hand, the general personal consumption expenditures price index for the period matched the (MoM) and (YoY) expectations of 0.2% and 2.6%, respectively. Personal income was also in line with the estimate of 0.3%, while personal spending beat 0.4% with a change of 0.7%.

On Thursday, the durable goods orders for December fell short of the expected change of 1.1% with a change of 0%. Durable goods orders ex-transportation exceeded the forecast of 0.2% with a change of 0.6%, while durable goods orders ex-defence missed 1.1% with a change of 0.5%.

On the other hand, the nondefense capital goods orders ex-aircraft beat the expected change of 0.1% with a change of 0.3%. The initial jobless claims for the week ending January 12 failed to match the expected claim count of 200k with a tally of 214k.

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

Technically, the dollar currency index appears to be trading within an ascending channel formation in the 60-minute chart. However, the 14-hour RSI has recently pulled back to avoid advancing into overbought conditions.

Therefore, the bears will be targeting extended pullbacks at about 103.19 or lower at 103.00. On the other hand, the bulls will look to pounce on profits at about 103.53 or higher at 103.71.

The US Dollar Index Technical Analysis (the Daily Chart)

In the daily chart, the US dollar index appears to be trading within an ascending channel formation. The 14-day RSI also seems to support a long-term bullish bias as it moves closer to overbought conditions.

Therefore, the bulls will be targeting long-term profits at about 104.22 or higher at 105.00. On the other hand, the bears will look to pounce on potential pullbacks at about 102.50 or lower at 101.64.