The US dollar index on Friday pulled back off the session highs of about 104.26 to trade at about 104.08 after the latest round of data. The DXY continues to trade within a sideways 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. However, the USDX still seems to have more room left to run before reaching the oversold levels of the 14-hour RSI.

The US Dollar Index Fundamentals Overview

From a fundamental perspective, the US dollar currency index is trading at the back of a relatively busy period in the US market. On Thursday, the initial jobless claims for the week ending January 2 beat the forecasted claim count of 220k with a slightly lower tally of 218k. The continuing claims for the preceding week also outshone the forecast of 1.878 million with 1.871 million. On the other hand, December wholesale inventories came in line with the forecasted change of 0.4%. 

On Wednesday, MBA mortgage applications for December grew by 3.7%, a significant improvement from the previous month’s decline of 7.2%. On the other hand, consumer credit change missed the expectation of $16 billion with a change of $1.56 billion. Earlier in the week, the ISM Services PMI for January outshone the expected reading of 52 with a reading of 53.4. The S&P Global Services PMI failed to match the expectation of 52.9 with a reading of 52.5.

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

Technically, the US dollar index appears to be trading within a sideways channel formation in the 60-minute chart. The 14-hour RSI also seems to indicate a lack of a clear directional bias as it continues to oscillate centrally.

Therefore, the bears will be targeting potential downward movements at about 103.87 or lower at 103.67. On the other hand, the bulls will look to pounce on potential upward movements at about 104.26 or higher at 104.43.

The US Dollar Index Technical Analysis (the Daily Chart)

In the daily chart, the dollar currency 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 edges closer to overbought conditions.

Therefore, the bulls will be targeting extended gains at about 105.05 or higher at 106.05. On the other hand, the bears will look to pounce on profits at about 103.02 or lower at 101.98.