On Friday, the US dollar index pulled back from the session highs of about 97.94 to trade at about 97.70 after the latest US data. The DXY trades within a descending channel 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 some 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 index trades during a relatively busy period in the U.S. market. On Friday, the ISM Services PMI for September missed the expectation of 51.7 with a reading of 50, down from the previous month’s equivalent of 52. The S&P Global Composite PMI for the month outshone the forecast of 53.6 with a reading of 53.9. 

Earlier in the week, the ISM Services PMI for September exceeded the expectation of 49, with a reading of 49.1, while the ISM Manufacturing Prices Paid missed the expectation of 63.2 with a reading of 61.9. The ADP employment change for the period also fell short of the forecasted change of 50k, with a change of -32k.

Elsewhere, the Chicago Purchasing Managers’ Index for September missed the expectation of 43, with a reading of 40.6, down from 41.5. Housing price index for July also fell short of 0.1% with a change of -0.1% (MoM), while JOLTS job openings for August outshone the estimate of 7.2 million with a tally of 7.227 million. Pending home sales for August also beat the expected (MoM) change of 0.3% with a change of 4%.

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

Technically, the US dollar index trades within a descending channel formation in the 60-minute chart. However, the 14-hour RSI still has room left to run before reaching oversold conditions.

Therefore, the bears will look to extend the current pullback towards 97.44 or lower to 97.19. On the other hand, the bulls will look to pounce on rebounds at about 97.94 or higher at 98.16. 

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 still has room left to run before reaching oversold conditions.

Therefore, the bears will look to ride the current run of declines toward 96.54 or lower to 95.37. On the other hand, the bulls will look to pounce on profits at about 98.97 or higher at 100.08.