On Friday, the US dollar index pulled back from the session highs of about 99.37 to trade at about 99.09 after the latest US data. The DXY trades within an ascending channel formation on the 60-minute chart.

The dollar currency index continues to trade a few levels above the 100-hour moving average line, despite the pullback. As a result, the USDX still has plenty of 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 currency index trades during a relatively busy period in the US market. On Friday, the US consumer price index for August matched the (MoM) forecast of 0.4%. The (YoY) equivalent was also in line with the estimate of 3.4%. On the other hand, the consumer price index ex-food and energy for the month outshone the forecast change of 0.2%, with a change of 0.3%, while the (YoY) equivalent matched the estimate of 2.4%. 

Elsewhere, the preliminary Michigan Consumer Sentiment Index for September missed the expected reading of 51, with a reading of 47.8, down from the previous month’s equivalent of 51.7.

On Thursday, the US producer price index for August was also in line with the estimate of 0.4%, while the (YoY) equivalent exceeded the expectation of 5.3%, with a change of 5.4%. On the other hand, the producer price index ex-food and energy for the period fell short of the forecasted (MoM) change of 0.3%, with a change of 0.2%, while the (YoY) equivalent matched the expectation of 4.6%.

The initial jobless claims for last week came in worse than expected, at 206k versus a forecast of 205k, slightly lower than the previous week’s equivalent of 207k.

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

Technically, the USDX trades within an ascending channel formation on 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 98.85 or lower, down to 98.57. On the other hand, the bulls will look to pounce on profits at about 99.37 or higher, up to 99.61. 

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 has recently bounced back to avoid falling into oversold conditions. 

Therefore, the bulls will look to extend the current rebound towards 100.29 or higher, up to 101.58. Meanwhile, bears will look to take profits at about 97.80 or lower, down to 96.50.