On Friday, the US dollar index extended declines towards the 100-hour moving average line before bouncing back to trade at 103.15. The DXY continues to trade within a descending channel formation in the 60-minute chart.
Friday’s late rebound pushed the USDX slightly above the 100-hour MA. It also prevented the US dollar currency index from descending into 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 week in the market. On Thursday, the initial jobless claims for the week ending August 2 came in better than expected with a claim count of 133k versus a forecast of 240k.
On the other hand, the continuing claims for the preceding week came in slightly higher with a claim count of 1.875 million versus a forecast of 1.87 million. Consumer credit change for June also fell short of $10 billion with a change of $8.93 billion, while the goods and services trade balance for the period missed $-72.4 billion with a balance of $-73.1 billion.
Elsewhere, the ISM Services PMI for July beat the expectation of 51 with a reading of 51.4. The ISM Services Price Paid also outshone 55.8 with 57, while the ISM Employment Index exceeded the estimate of 46.5 with a reading of 51.1. On the other hand, the S&P Global Services PMI for July missed 56 with a reading of 55, while the S&P Global Composite PMI fell short of 55 with 54.3.
The US Dollar Index Technical Analysis (the 60-min Chart)
Technically, the USDX trades within a descending channel formation in the 60-minute chart. However, the 14-hour RSI has bounced back to avoid descending into the oversold conditions.
Therefore, the bulls will look to extend the current rebound toward 103.36 or higher to 103.55. On the other hand, the bears will look to pounce on profits at about 102.95 or lower at 102.74.
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 also bounced back to avoid falling into oversold conditions.
Therefore, the bulls will look to stretch the current rebound towards 103.99 or higher to 104.77. On the other hand, the bears will be targeting long-term profits at about 102.41 or lower at 101.63.
