On Friday, the US dollar index pulled back from the session highs of about 97.83 to trade at about 97.61 after the latest U.S. data. The DXY trades within a sideways channel formation in the 60-minute chart.
The dollar currency index also plummeted 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 dollar currency index trades during a relatively busy period in the U.S. market. On Friday, the preliminary Michigan Consumer Expectations index for September came in weaker than expected, with 51.8 versus a forecast of 54.9. The preliminary Michigan Consumer Sentiment Index for the month also fell short of 58, with a reading of 55.4.
On Thursday, the consumer price index for August outshone the forecast of 0.3% with a change of 0.4% (MoM). The (YoY) equivalent was in line with the estimate of 2.9%. The consumer price index ex-food and energy also matched the expectations of 0.3% (MoM) and 3.1% (YoY), respectively. On the other hand, the initial jobless claims for the week ending September 5 came in significantly higher than expected, with 263k versus a forecast of 236k, up from the previous week’s claim count of 235k.
Earlier in the week, the producer price index for August missed the expected (MoM) and (YoY) changes of 0.3% and 3.3%, respectively, with -0.1% and 2.6%. The producer price index ex-food and energy also fell short of 0.3% (MoM) and 3.5% (YoY), with -0.1% and 2.8%, respectively.
The US Dollar Index Technical Analysis (the 60-min Chart)
Technically, the US dollar index trades within a slightly ascending channel formation in the 60-minute chart. However, the 14-hour RSI has recently pulled back to move towards oversold conditions.
Therefore, the bears will look to extend the current pullback towards 97.37 or lower to 97.10. On the other hand, the bulls will look to pounce on rebounds at about 97.83 or higher at 98.09.
The US Dollar Index Technical Analysis (the Daily Chart)
In the daily chart, the USDX trades within a gently descending channel formation. However, the 14-day RSI still has plenty of room left to run before reaching oversold conditions.
Therefore, the bears will look to stretch the current downward movement towards 96.38 or lower to 95.07. On the other hand, the bulls will look to pounce on profits at about 98.99 or higher at 100.28.