On Friday, the US dollar index pulled back from the session highs of about 98.97 to trade at about 98.67 after the latest US data. The DXY trades within a sideways channel formation in the 60-minute chart.

The dollar currency index continues to trade a few levels below the 100-hour moving average line after the pullback. However, the USDX still has 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 US market. On Friday, the consumer price index for March matched the (MoM) forecast of 0.9%, up from 0.3% in February. The (YoY) equivalent was also in line with the estimate of 3.3%, up from 2.4%. 

On the other hand, the consumer price index ex-food and energy missed the expectation of 0.3%, with a change of 0.2% (MoM), unchanged from February. The (YoY) equivalent also fell short of the forecasted change of 2.7%, with a change of 2.6%, up from 2.5%.

The preliminary Michigan Consumer Sentiment Index for April missed the expectation of 52, with a reading of 47.6, down from 53.3 in March. On the other hand, the factory orders for February outperformed the expected (MoM) change of -0.2%, with a change of 0%.

Earlier in the week, the US initial jobless claims for last week increased to 219k, up from 203k in the previous week, missing the forecasted claim count of 210k. The annualized US gross domestic product for Q4 also fell short of 0.7%, with a change of 0.5%, while the gross domestic product price index for the period missed 3.8%, with a change of 3.7%.

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

Technically, the US dollar index trades within a sideways channel formation in the 60-minute chart. However, the 14-hour RSI has recently pulled back to move closer to oversold conditions.

Therefore, the bears will look to extend the latest pullback towards 98.30 or lower to 97.94. On the other hand, the bulls will look to pounce on rebounds at about 98.97 or higher at 99.32. 

The US Dollar Index Technical Analysis (the Daily Chart)

In the daily chart, the US dollar currency index has recently completed a downward breakout from an ascending channel formation. However, the 14-day RSI still has room left to run before reaching oversold conditions.

Therefore, the bears will look to extend the current pullback towards 97.15 or lower to 95.60. On the other hand, the bulls will look to pounce on profits at about 100.27 or higher at 101.70.