On Friday, the US dollar index bounced back from the session lows of about 98.57 to trade at about 98.84 after the latest US data. The DXY trades within a descending channel formation on the 60-minute chart.
The dollar currency index continues to trade a few levels below the 100-hour moving average line, despite the rebound. As a result, the USDX still has room left to run before reaching the overbought levels of the 14-hour RSI.
The US Dollar Index Fundamentals Overview
From a fundamental perspective, the US dollar currency index trades during a relatively busy period in the US market. On Friday, the preliminary S&P Global Manufacturing PMI for August missed the expectation of 53.9, with a reading of 53.2, down from the previous month’s equivalent of 53.9. The preliminary S&P Global Services PMI for the period improved to 56.8, up from 54.6 in July, beating the forecast of 54.
On Thursday, the US initial jobless claims for last week fell to 206k, down from the previous week’s equivalent of 212k, beating the forecasted claim count of 210k. On the other hand, the Philadelphia Fed Manufacturing Survey for August rose to 47.4, up from 41.4 in July, beating the expectation of 25.
Earlier in the week, the US building permits for July also improved to 1.433 million, up from 1.374 million in June, beating the forecasted tally of 1.37 million. On the other hand, the housing starts for the period fell to 1.239 million, down from 1.415 million, missing the expectation of 1.35 million.
Elsewhere, industrial production for July missed the expected (MoM) change of 0.3%, with a change of 0.2%, while the pending home sales for the period fell short of 0.3%, with a change of -2.3% (MoM).
The US Dollar Index Technical Analysis (the 60-min Chart)
Technically, the US dollar index trades within a descending channel formation in the 60-minute chart. However, the 14-hour RSI has recently bounced back to recover from oversold conditions.
Therefore, the bulls will look to extend the latest rebound towards 99.09 or higher to 99,37. On the other hand, the bears will look to pounce on profits at about 98.57, or lower at 98.27.
The US Dollar Index Technical Analysis (the Daily Chart)
In the daily chart, the USDX is closer to finishing a double-top reversal pattern formation. The 14-day RSI also supports a long-term bearish bias as it moves closer to oversold conditions.
Therefore, the bears will look to extend the current declines toward 97.51 or lower to 96.13. On the other hand, the bulls will look to pounce on rebounds at about 100.19, or higher at 101.53.
