On Friday, the US dollar index pulled back from the session highs of about 97.86 to trade at about 97.57 after the latest US data. The DXY trades within a consolidative triangle formation in the 60-minute chart.

The dollar currency index has now fallen to trade slightly below the 100-hour moving average line. However, the USDX still has 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 trades during a relatively busy period in the US market. On Friday, the producer price index for January came in better than expected with (MoM) and (YoY) changes of 0.5% and 2.9%, respectively, versus forecasts of 0.3% and 2.6%. 

The producer price index ex-food and energy also exceeded the (MoM) and (YoY) forecasts of 0.3% and 3%, respectively, with changes of 0.8% and 3.6%. On the other hand, the Chicago Purchasing Managers’ Index for February rose to 57.7, up from 54 in January, beating the forecasted reading of 52.8.

Earlier in the week, the US initial jobless claims for last week came in lower than expected, with 212k versus a forecast of 215k, up from the preceding week’s claim count of 208k. On the other hand, the US housing price index for December missed the expected (MoM) change of 0.3%, with a change of 0.1%. 

The S&P/Case-Shiller Home Price Indices for the month also fell short of 1.4%, with a change of 1.5%, while factory orders for the period failed to match the forecasted (MoM) change of 1.1%, with a change of -0.7%.

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

Technically, the uS dollar index trades within a bullish consolidative triangle formation in the 60-minute chart. However, the 14-hour RSI has recently pulled back to avoid rallying into overbought conditions. 

Therefore, the bears will look to extend the latest pullback towards 97.28 or lower to 96.97. On the other hand, the bulls will look to pounce on profits at about 97.86 or higher at 98.15.

The US Dollar Index Technical Analysis (the Daily Chart)

In the daily chart, the USDX trades within a highly volatile descending channel formation. However, the 14-day RSI has recently bounced back to recover from oversold conditions.

Therefore, the bulls will look to stretch the latest rebound towards 98.58 or higher to 99.53. On the other hand, the bears will look to pounce on profits at about 96.56 or lower at 95.51.