On Friday, the US dollar index pulled back from the session highs of about 98.60 to trade at about 98.18 after the latest U.S. data. The DXY trades within an ascending channel formation in the 60-minute chart. 

The dollar currency index has now fallen to trade a few levels below the 100-hour moving average line. As a result, the USDX avoided rallying into the overbought 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 preliminary Michigan Consumer Sentiment Index for June rose to 60.5 from 52.2 in May, beating the forecasted reading of 53.5. The preliminary Michigan Consumer Expectations Index for the period also edged higher to 58.4, up from 47.9.

Elsewhere, the preliminary UoM 1-year consumer inflation expectation for June came in at 5.1%, down from 6.6% in May, while the preliminary UoM 5-year consumer inflation expectation for the period edges slightly lower to 4.1% from 4.2%.

Earlier in the week, the U.S. initial jobless claims for the week ending June 6 came in higher than expected with 248k versus a forecast of 240k, unchanged from the previous week.

The producer price index for May also missed the expected (MoM) change of 0.2% with a change of 0.1%. The (YoY) equivalent was in line with the estimate of 2.6%. On the other hand, the producer price index ex-food and energy missed both the (MoM) and (YoY) expectations of 0.3% and 3.1%, respectively with 0.1% and 3%.

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 avoid rallying into overbought conditions.

Therefore, the bears will look to extend the current pullback towards 97.69 or lower to 97.19. On the other hand, the bulls will look to ride the current run of gains toward 98.60 or higher to 99.11.

The US Dollar Index Technical Analysis (the Daily Chart)

In the daily chart, the US dollar currency index trades within a descending channel formation. The 14-day RSI also supports a bearish bias as it edges closer to oversold conditions.

Therefore, the bears will look to extend the current declines toward 97.03 or lower to 95.85. On the other hand, the bulls will look to pounce on rebounds at about 99.35 or higher at 100.48.