The US dollar currency index on Friday bounced off the 100-hour moving average to trim session losses after a sharp pullback. The USDX continues to trade within an ascending channel formation in the 60-min chart.
The dollar Index momentarily traded off the trendline support before rallying to avoid falling into the oversold conditions of the 14-hour RSI. It remains several levels off the overbought conditions, leaving room for more upward movement.
The US Dollar Index Fundamentals Overview
From a fundamental perspective, the USDX is trading at the back of a relatively busy period in the US market. On Friday, the US Jobs Data for November came in at 210k, widely missing the market expectation of 550k. On the other hand, the hourly wage growth for the month was 4.8% compared to an expectation of 5%, and in line with the previous month’s (YoY) growth, while the unemployment rate impressed after declining to 4.2%, down from 4.6% in October, significantly exceeding the market forecast of 4.5%.
Earlier in the week, the market was hit with the threat of the Omnicron variant pushing currency traders towards the safety of the greenback. On the other hand, the US ISM Manufacturing PMI for November narrowly beat the expectation of 61 with 61.1. On the other hand, the initial jobless claims for the week ending November 26, outperformed the expectation of 240k claims with a lower tally of 222k.
The US Dollar Index Technical Analysis (the 60-min Chart)
Technically, the USDX 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 could target extended gains at about 96.31, or higher at 96.48. On the other hand, the bears could target potential pullbacks at about 96.00, or lower at 95.83.
The US Dollar Index Technical Analysis (the Daily Chart)
In the daily chart, the USDX seems to be trading within a sharply ascending channel formation. Asa result, it has ascended closer to the overbought conditions of the 14-day RSI, thus indicating a strong bullish bias.
Therefore, the bulls will be targeting long-term profits at about 96.90, or higher at 97.57. On the other hand, the bears will be looking to pounce for profits at about 95.60 or lower at 94.89.