On Friday, the US dollar index pulled back from the session highs of about 107.20 to trade at about 106.99 after the latest 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. Friday’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. On Friday, the U.S. import price index for November outperformed the expected (MoM) change of -0.2% with a change of 0.1%. The US export price index for the month also beat -0.2% with a change of 0%.

On Thursday, the initial jobless claims for the week ending December 6 missed the expectation of 220k with a significantly higher tally of 242k, up from the preceding week’s equivalent of 225k. 

The producer price index for November beat the forecasted (MoM) and (YoY) changes of 0.2% and 2.6%, respectively with changes of 0.4% and 3%. On the other hand, the producer price index ex-food and energy beat the (YoY) estimate of 3.2% with a rate of 3.4%, while the (MoM) equivalent was in line with the expectation of 0.2%.

Earlier in the week the U.S. consumer price index matched the expectations of 0.3% (MoM) and 2.7% (YoY). The consumer price index ex-food and energy was also in line with the estimates of 0.3% (MoM) and 3.3% (YoY).

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

Technically, the USDX trades within an ascending channel formation in the 60-minute chart. However, the 14-hour RSI still has room left to run before reaching the overbought conditions of the indicator.

Therefore, the bulls will look to stretch the current rally towards 107.20 or higher to 107.45. On the other hand, the bears will look to pounce on pullbacks at about 106.74 or lower at 106.47.

The US Dollar Index Technical Analysis (the Daily Chart)

In the daily chart, the US dollar currency index has completed an upward breakout from a consolidative triangle formation. The 14-day RSI also supports a bullish bias as it edges closer to overbought conditions.

Therefore, the bulls will look to stretch the current rebound towards 108.15 or higher to 109.42. On the other hand, the bears will look to pounce on profits at about 105.88 or lower at 104.45.