The US dollar index on Friday pulled back off the current weekly highs of about 110.144 to trade at about 109.669. The USDX appears to be trading within an ascending channel formation in the 60-min chart.

The DXY rejected a retest of the 100-hour moving average line following the pullback. The pullback also prevented the US dollar currency index from ascending to the overbought conditions of the 14-hour RSI.

The US Dollar Index Fundamentals Overview

From a fundamental perspective, the US dollar index is trading at the back of a relatively busy period in the US market. On Friday, the preliminary Michigan Consumer Sentiment Index for September missed the expectation of 60 with a reading of 59.5. On Thursday, the US retail sales control group for August also came short of 0.5% with a change of 0%, while general retail sales for the period outshone the (MoM) forecast of 0% with a change of 0.3%. Elsewhere, the initial jobless claims for last week beat the expected claim count of 226k with a lower tally of 213k.

Earlier in the week, the US consumer price index ex-food and energy for August outperformed the (YoY) expectation of 6.1% with a change of 6.3%. The (MoM) equivalent also beat the forecast of 0.3% with a change of 0.6%. Elsewhere, the general CPI beat the (MoM) expectation of -0.1% with a change of 0.1%, while the (YoY) equivalent outshone the forecast of 8.1% with a change of 8.3%.

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

Technically, the US dollar index seems to be trading within an ascending channel formation in the 60-min chart. This indicates a significant short-term bullish bias in the market sentiment.

Therefore, the bulls will be looking to extend the current gains toward 110.144 or higher at 110.787. On the other hand, the bears will be targeting potential pullback profits at about 109.080 or lower at 108.438.

The US Dollar Index Technical Analysis (the Daily Chart)

In the daily chart, the US dollar currency index seems to be trading within a sharply ascending channel formation. This indicates a strong long-term bullish bias in the market sentiment.

Therefore, the bulls will be targeting long-term profits at about 111.809 or higher at 114.132. On the other hand, the bears will be looking to pounce on potential pullbacks at about 107.550 or lower at 104.927.