The US dollar fell back after May’s PCE came out short of expectations. After a brief pullback, the pair found solid support next to the former resistance at 134.30. A pop above the recent high (136.70) suggests that the bulls are back in the game. This is a bullish sign that the overall direction remains up. Though short-term price action may be choppy as the greenback looks for bids below 135.80. 135.10 is the next support to gauge buying interest. The bulls will need to push above 136.40 to continue upward.
