The US dollar index on Friday extended the current sideways movement around the 104.29 level after the latest US data. The DXY continues to trade within a slightly ascending channel formation in the 60-minute chart.
The US dollar currency index later pulled back slightly to trade just below the 100-hour moving average line. However, the USDX still seems to have 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 trades during a relatively busy period in the market. On Friday, the Michigan Consumer Sentiment Index for July beat the expected reading of 66 with a reading of 66.4, up from the previous month’s equivalent of 66. The UoM 5-year inflation expectations for the period also outshone the forecasted rate of 2.9% with a rate of 3%, up from 2.9%.
Elsewhere, the US personal consumption expenditures – price index for June was in line with the estimates of 0.1% (MoM) and 2.5% (YoY). The core personal consumption expenditures – price index for the period outshone the forecasted (MoM) change of 0.1% with a change of 0.2%, while the (YoY) equivalent beat 2.5% with a change of 2.6%.
On Thursday, the US initial jobless claims for the week ending July 19 outshone the forecasted claim count of 238k with a tally of 235k. US durable goods orders for June fell short of 0.3% with a change of -6.6%, while the durable goods orders ex-transportation exceeded the estimate of 0.2% with a change of 0.5%. The nondefense capital goods orders ex-aircraft also beat 0.2% with a change of 1%.
The US Dollar Index Technical Analysis (the 60-min Chart)
Technically, the dollar currency index trades within a slightly ascending channel formation in the 60-minute chart. However, the 14-hour RSI has recently pulled back to move closer to the oversold levels.
Therefore, the bears will target extended declines at about 104.08 or lower at 103.86. On the other hand, the bulls will look to pounce on profits at about 104.53 or higher at 104.74.
The US Dollar Index Technical Analysis (the Daily Chart)
In the daily chart, the USDX trades within a descending channel formation. However, the 14-day RSI has recently bounced back to avoid falling into the oversold levels of the indicator.
Therefore, the bulls will be looking to stretch the current rebounds toward 105.00 or higher to 105.58. On the other hand, the bears will look to pounce on profits at about 103.65 or lower at 102.99.
