On Friday, the US dollar index pulled back from the current week’s highs of about 99.88 to trade at about 99.54 after U.S. data. The DXY trades within a sideways channel formation in the 60-minute chart.

The US dollar currency index continues to trade slightly 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 Michigan Consumer Sentiment Index for April improved to 52.2, up from 50.8 in March, beating the forecast of 50.8. The Michigan Consumer Expectations Index for the period also edges slightly higher to 47.3, up from 47.2, ahead of the forecasted reading of 47.2.

On the other hand, the UoM 5-year consumer inflation expectation for April was unchanged at 4.4%, in line with estimates, while the 1-year consumer inflation expectation edges lower to 6.5%, down from 6.7% in March, missing the forecast of 6.7%.

On Thursday, the U.S. initial jobless claims for last week came in worse the expected with 222k versus a forecast of 221k, up from the previous week’s claim count of 216k. The durable goods orders for March impressed with a change of 9.2% versus the expectation of 2%, while the durable goods orders ex-defence beat 0.2% with a change of 10.4%.

On the other hand, the durable goods orders ex-transportation missed the forecasted change of 0.2% with a change of 0%, while the nondefense capital goods orders ex-aircraft fell short of 0.2% with a change of 0.1%.

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

Technically, the USDX trades within a sideways channel formation in the 60-minute chart. The 14-hour RSI has recently pulled back to avoid rallying into overbought conditions.

Therefore, the bears will look to stretch the current pullback towards 99.20 or lower to 98.87. On the other hand, the bulls will look to pounce on profits at about 99.88 or higher at 100.20.

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 ride the current rebound towards 101.51 or higher to 103.36. On the other hand, the bears will look to pounce on extended declines at about 97.47 or lower at 95.55.