On Friday, the US dollar index pulled back from the session highs of about 99.69 to trade at about 99.40 after the latest U.S. data. The DXY trades within a descending channel formation in the 60-minute chart.

The US dollar currency index has now dropped to trade below the 100-hour moving average line. However, it 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 U.S. market. On Friday, the Michigan Consumer Expectation Index for May outperformed the forecast of 45.6 with a reading of 47.9. The Michigan Consumer Sentiment Index for the period also beat 51 with a reading of 52.2.

On the other hand, personal income for April exceeded the (MoM) forecast of 0.3% with a change of 0.8%, while personal spending matched the estimate of 0.2%. The Chicago Purchasing Managers’ Index for May fell short of 45 with a reading of 40.4.

Elsewhere, the UoM 1-year consumer inflation expectation for May missed the forecast of 7.3% with 6.6%, while the UoM 5-year consumer inflation expectation for the period fell short of 4.6% with 4.2%. The U.S. personal consumption expenditures – price index for April failed to Match the (YoY) forecast of 2.2% with 2.1%, while the (MoM) equivalent was in line with the estimate of 0.1%. 

On the other hand, the core personal consumption expenditures – price index for the month matched both the (MoM) and (YoY) forecasts of 0.1% and 2.5%, respectively. 

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

Technically, the US dollar index trades within a descending channel formation in the 60-minute chart. However, the 14-hour RSI still has room left to run before reaching oversold conditions.

Therefore, the bears will look to extend the current decline towards 99.06 or lower to 98.73. On the other hand, the bulls will look to pounce on rebounds at about 99.69 or higher at 100.02.

The US Dollar Index Technical Analysis (the Daily Chart)

In the daily chart, the USDX trades within a descending channel formation. The 14-day RSI also supports a long-term bearish bias as it moves closer to oversold conditions.

Therefore, the bears will target extended declines at about 97.92 or lower at 96.55. On the other hand, the bulls will look to pounce on rebounds at about 100.57 or higher at 101.97.