The US dollar index on Thursday extended declines to trade at about 103.11 after hitting a session high of 103.57. The currency pair appears to be trading within a descending channel formation in the 60-min chart.
The pair has now fallen to trade next to the 100-hour moving average line. However, the currency pair still seems to have a lot of 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 is trading at the back of a relatively busy period in the US market. On Thursday, the US ADP Employment Change for June outperformed the expectation of 228k with a tally of 497k. On the other hand, the JOLTS job openings for May missed the expected tally of 9.93 million with a tally of 9.8 million.
Elsewhere, the US ISM services PMI for June outshone the forecasted reading of 51 with a reading of 53.9. The ISM Services Prices Paid for the period also beat 53.3 with 54.1, while the ISM Services New Orders Index missed 55.9 with a reading of 55.5.
The S&P Global Composite PMI for the period beat the forecasted reading of 53 with reading of 53.2, while the S&P Global Services PMI outshone the estimate of 54.1 with a reading of 54.4. Looking forward, traders will be waiting for the June non-farm payroll data on Friday.
The US Dollar Index Technical Analysis (the 60-min Chart)
Technically, the USDX appears to be trading within a descending channel formation in the 60-min chart. This indicates a significant short-term bearish bias in the market sentiment.
Therefore, the bears will be looking to stretch the current run of declines toward 102.87 or lower to 102.61. On the other hand, the bulls will be targeting short-term profits at about 103.32 or higher at 103.57.
The US Dollar Index Technical Analysis (the Daily Chart)
In the daily chart, the US dollar index seems to be trading within an ascending channel formation. This shows a significant long-term bullish bias in the market sentiment.
Therefore, the bulls will be looking to pounce on extended gains at about 104.29 or higher at 105.58. On the other hand, the bears will be targeting long-term profits at about 102.01 or lower at 100.83.