A drop in July’s core CPI in the US has put the greenback on the defense.
The rebound had gained traction after the pair closed above 110.50, a major resistance on the daily chart. This is a strong sign that the rally may have resumed after a five-week-long consolidation.
Though a repeatedly overbought RSI showed overextension in the short-term, and the current pullback would test the psychological level of 110.00.
Then 111.20 would be the next stop if the bullish momentum picks up again.
