US Dollar Index Pulls Back Off Session Highs to Trade at 99.31

By Nicholas Kitonyi October 10, 2025, 3:09 pm • Posted in Forex

On Friday, the US dollar index extended Thursday’s pullback from 99.55 to trade at about 99.31 ahead of preliminary consumer inflation data. The DXY trades within an ascending channel formation in the 60-minute chart.

The US dollar currency index continues to trade a few levels above the 100-hour moving average line. However, Thursday’s pullback prevented the USDX from advancing 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. It comes as the US government shutdown continues into a third week, after the Republicans and Democrats failed to resolve a budget dispute since last month.

In the latest U.S. economic data, the consumer credit change for August missed the expectation of $13.5 billion, with a change of $0.36 billion, down from the previous update of $18.05 billion. MBA mortgage application posted a change of -4.7% compared to a change of -12.7% in the preceding period.

On the other hand, RealClearMarkets/TIPP Economic Optimism for October fell short of the forecasted reading of 49.3, with a reading of 48.3, down from 48.7. The readbook index also posted a reduced change of 5.8% versus 5.9% in the previous update.

On Friday, the preliminary Michigan Consumer Sentiment Index for October came in stronger than expected, with 55 versus a forecast of 54.2, down from 55.1.

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 latest pullback towards 98.70 or lower to 98.08. On the other hand, the bulls will look to ride the current run of gains toward 99.87 or higher to 100.51.

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 move closer to overbought conditions.

Therefore, the bulls will look to stretch the latest rebound towards 101.05 or higher to 103.05. On the other hand, the bears will look to pounce on profits at about 97.34 or lower at 95.45.