On Friday, the US dollar index pulled back from the session highs of about 98.15 to trade at about 97.83 after the latest U.S. data. The DXY trades within a descending channel formation in the 60-minute chart.

Friday’s pullback pushed the dollar currency index a few levels below the 100-hour moving average line. However, a late rebound prevented the USDX from entering 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 U.S. personal consumption expenditures – price index for July matched the forecasted (MoM) and (YoY) changes of 0.2% and 2.6%, respectively. The core personal consumption expenditures price index for the period was also in line with the estimates of 0.3% (MoM) and 2.9% (YoY).

Elsewhere, personal income matched the forecasted (MoM) change of 0.4%, while personal spending was also in line with the estimate of 0.5%. On the other hand, the Chicago Purchasing Managers’ Index for August fell short of 46 with a reading of 41.5.

The Michigan Consumer Sentiment Index for August also missed the forecasted reading of 58.6, with a reading of 58.2, while the Michigan Consumer Expectations Index fell short of 57.2 with a reading of 55.9. Elsewhere, the UoM 5-year consumer inflation expectation for the month failed to match the forecast of 3.9% with a rate of 3.5%, while the 1-year consumer inflation expectation missed 4.9% with a rate of 4.8%.

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 made a late rebound on Friday to avoid falling into oversold conditions.

Therefore, the bulls will look to stretch the current rebound towards 98.15 or higher to 98.49. On the other hand, the bears will look to pounce on profits at about 97.51 or lower at 97.17.

The US Dollar Index Technical Analysis (the Daily Chart)

In the daily chart, the USDX trades within a 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 ride the current run of declines toward 96.60 or lower to 95.41. On the other hand, the bulls will look to pounce on rebounds at about 98.98 or higher at 100.24.