The dollar index is made up primarily of euro and currencies closely tied to the euro like the pound, Swiss franc and SEK, so its moves essentially mirror EUR/USD. From a technical perspective, a major top at 80.73 is just overhead in DXY. That roughly correlates with the 1.2800 level in EUR/USD. For a fresh USD rally to take hold, a clean break of 80.73 is needed.
We trade now at 80.63.
Weak US retail sales data could be a catalyst, undermining the slightly improved market appetite for risk this morning.
A rise of 0.2% is expected.
