The US dollar jumped after January’s inflation did not slow down as fast as expected. The pair came to rest at the start of the breakout rally in early January (1.0660). The top of a previously faded rebound (1.0790) showed a spike with an upper shadow indicating rejection of the upside. The former demand zone around 1.0830 is the hurdle ahead and only a close above 1.0940 would reignite hopes of a bullish continuation. Otherwise, a drop below 1.0660 would bring back the selling pressure and drive the euro towards 1.0500.
