The euro soared after the ECB said it would kick off its rate hike cycle next month. The pair previously saw solid support at the double bottom at 1.4780. A break above 1.4910 has prompted sellers to cover their positions. The follow-up rally is a confirmation of a sustainable rebound. 1.5160 from the liquidation in late May is key resistance. Its breach could turn sentiment around in the medium-term and extend the reversal above 1.5280. In the meantime, the RSI’s overbought situation may cause a brief fallback towards 1.4890.
