On Friday, the US dollar index pulled back from the session highs of about 99.20 to trade at about 98.92 after the latest US data. The DXY trades within a sideways 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 is on the verge of entering the oversold 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 US market. On Friday, the Chicago Purchasing Managers’ Index for May outperformed the expectation of 50.5, with a reading of 62.7, up from the previous month’s equivalent of 49.2. 

On Thursday, the US durable goods orders for April also outshone the forecasted change of 3.5%, with a change of 7.9%, while the durable goods orders ex-transportation beat 0.5%, with a change of 1.1%. On the other hand, the nondefense capital goods orders ex-aircraft fell short of the forecasted change of 0.4%, with a change of -1.1%.

Elsewhere, the US personal income for April missed the expected (MoM) change of 0.4%, with a change of 0%. Personal spending for the period matched the expected change of 0.5%. The initial jobless claims for last week came in higher than expected, with 215k versus a forecast of 211k, up from the preceding week’s claim count of 210k.

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 bounced back to avoid falling into oversold conditions. 

Therefore, the bulls will look to stretch the latest rebound towards 99.20 or higher to 99.53. On the other hand, the bears will look to pounce on profits at about 98.60 or lower at 98.25.

The US Dollar Index Technical Analysis (the Daily Chart)

In the daily chart, the US dollar currency index also trades within a sideways channel formation. However, the 14-day RSI has recently pulled back to avoid moving closer to overbought conditions.

Therefore, the bears will look to extend the current pullback towards 98.06 or lower to 97.11. On the other hand, the bulls will look to pounce on profits at about 99.75 or higher at 100.59.