The US dollar surges as the Fed signals interest rate hikes in 2023.
The pair has been in a steady retracement after it broke above the daily resistance at 1.2240. Though the breach of the major support at 1.2070 may have dented the bullish fever.
The RSI is deep in the oversold zone. The demand area between 1.1990 and the psychological level of 1.2000 could see a limited rebound as a result of profit-taking and dip-buying.
1.1940 could be the next target while 1.2130 has become the new resistance.
