The US dollar rallied after Powell reaffirmed that the Fed would raise rates as high as needed. A rally above the daily resistance at 0.9640 has flushed out short-term sellers. This could be the start of a bullish continuation after the pair went through a deep retracement of its April extension. As sentiment shifts to a more upbeat tone, a close above 0.9740 could attract momentum buyers and carry the greenback to July’s peak at 0.9870. 0.9570 is the closest support and 0.9500 is the bulls’ second line of defence.
