The US Dollar edged up from eight-month lows on Friday despite slowing inflation data ahead of the Federal Reserve this week whereby investors are hoping that the central bank can engineer an economic soft landing and reduce its pace of aggressive monetary tightening.

DXY is trapped between support and resistance in the front side of the daily bearish trend. However, should the Fed's communication still emphasize that it is not done yet in terms of tightening its policy stance, signalling that more rate hikes are still in the pipeline, US Dollar volatility could be extreme this week.