On Friday, the US dollar index bounced back from the session lows of about 101.48 to trade at about 102.24 after the US jobs data. The DXY trades within an ascending channel formation on the 60-minute chart.
The US dollar currency index has now advanced to trade several levels above the 100-hour moving average line. However, the USDX pulled back later on Friday in an attempt to recover from the overbought 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 US market. On Friday, the US jobs data for October came in better than expected, with a net change of 165k versus a forecast of 65k, up from the previous month’s revised figure of 60k. The unemployment rate fell to 4.1%, down from 4.2%, also below the forecast rate of 4.2%.
The average hourly earnings grew by 0.4% (MoM) versus a forecast of 0.3%. The (YoY) equivalent also beat the expected change of 2.9%, with a change of 3.1%. On the other hand, the preliminary Michigan Consumer Sentiment Index for November rose to 51, up from 48 in October, beating the forecast reading of 48.
On Thursday, the US initial jobless claims for last week came in better than expected, at 189k versus a forecast of 196k, down from the previous week’s claim count of 195k. On the other hand, the preliminary nonfarm productivity for Q3 exceeded the forecast change of 2.5%, with a change of 3.6%. The preliminary unit labor costs for the quarter fell short of 0.6%, with a change of -0.7%.
The US Dollar Index Technical Analysis (the 60-min Chart)
Technically, the US dollar index trades within an ascending channel formation on the 60-minute chart. However, the 14-hour RSI has recently pulled back in an attempt to recover from overbought conditions.
Therefore, the bears will look to extend the current pullback towards 101.84 or lower, down to 101.48. On the other hand, the bulls will look to extend the current run of gains toward 102.64 or higher, up to 103.01.
The US Dollar Index Technical Analysis (the Daily Chart)
In the daily chart, the dollar currency index trades within a descending channel formation. However, the 14-day RSI has recently bounced back to move closer to overbought conditions.
Therefore, the bulls will look to stretch the current rebound towards 103.27 or higher, up to 104.30. On the other hand, the bears will look to pounce on profits at about 101.10 or lower, down to 100.12.
