US Dollar Index Technical Analysis

The DXY (Dollar Index) has been showing a downward trend since March 2020, when the FED decided to cut the interest rate to support the economy in face of the new Covid-19. This week, for the first time since 2020, inflation concerns have become more real and the DXY rose 0.7% against its major counterparts on Tuesday after the Consumer Price Index data was released. In the last two days the market has been sideways waiting for the Core Retail Sales data, to be released later this Friday. If the number comes higher than expected, this could be positive for the US dollar and start an upward trend in the short and medium term.