On Friday, the US dollar index pulled back from the session highs of about 98.05 to trade at about 97.66 after the latest US data. The DXY trades within an ascending channel formation in the 60-minute chart.
The dollar currency index continues to trade slightly above the 100-hour moving average line, despite the latest pullback. Friday’s pullback pushed the USDX closer to 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 preliminary annualized US gross domestic product for Q4 missed the expectation of 3%, with a change of 1.4%. The preliminary personal consumption expenditures for Q4 came in stronger than expected, with a (QoQ) change of 2.9% versus a forecast of 2.8%. The core personal consumption expenditures for the period also exceeded the expected (QoQ) change of 2.6%, with a change of 2.7%.
On the other hand, the personal consumption expenditures price index for December outperformed the (MoM) and (YoY) forecasts of 0.3% and 2.8%, respectively, with changes of 0.4% and 2.9%. The core personal consumption expenditures price index for the period also beat the expected (MoM) and (YoY) changes of 0.3% and 2.9%, respectively, with 0.4% and 3%.
Elsewhere, the preliminary S&P Global Manufacturing PMI for February missed the expectation of 52.6, with a reading of 51.2, down from 52.4 in January. The preliminary S&P Global Services PMI for the period also fell short of 53, with a reading of 52.3, down from 52.7.
The US Dollar Index Technical Analysis (the 60-min Chart)
Technically, the US dollar index trades within an ascending channel formation in the 60-minute chart. However, the 14-hour RSI has recently pulled back to recover from oversold conditions.
Therefore, the bears will look to stretch the latest pullback towards 97.25 or lower to 96.82. On the other hand, the bulls will look to pounce on profits at about 98.05 or higher at 98.46.
The US Dollar Index Technical Analysis (the Daily Chart)
In the daily chart, the US dollar currency index trades within a descending channel formation. However, the 14-day RSI has recently bounced back to avoid falling into oversold conditions.
Therefore, the bulls will look to extend the latest rebound towards 99.44 or higher to 101.23. On the other hand, the bears will look to pounce on profits at about 95.53 or lower at 93.73.