On Friday, the US dollar index rallied to trade at a session high of about 97.92 before pulling back later to settle at 97.67. 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. Friday’s pullback prevented the USDX from ascending into the overbought 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 U.S. market. On Friday, the durable goods orders for June exceeded the forecasted change of -10.8% with a change of -9.3%. The durable goods orders ex-transportation also came in better than expected, with 0.2% versus a forecast of 0.1%, while the non-defense capital goods orders missed the expectation of 0.2% with a change of -0.7%.

On Thursday, the initial jobless claims for the week ending July 18 outperformed the expectation of 227k with a significantly lower tally of 217k, down from the preceding week’s claim count of 221k. The continuing claims for the week ending July 11 also beat the forecast of 1.96 million, with 1.955 million, up from 1.951 million. 

Elsewhere, the preliminary S&P Global Manufacturing PMI for July came in worse than expected with a reading of 49.2 versus a forecast of 52.5, down from 52. The preliminary S&P Global Services PMI for the period improved to 55.2, up from 52.9, beating the forecast of 53.

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

Technically, the US dollar currency index trades within an ascending channel 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 current pullback towards 97.41 or lower to 97.10. On the other hand, the bulls will look to pounce on profits at about 97.92 or higher at 98.17.

The US Dollar Index Technical Analysis (the Daily Chart)

In the daily chart, the US dollar index trades within a descending channel formation. However, the 14-day RSI still has room left to run before falling into oversold conditions.

Therefore, the bears will look to ride the current run of declines toward 96.42 or lower to 95.32. On the other hand, the bulls will look to pounce on a rebound at about 98.94 or higher at 100.02.