The US dollar crumbled after data showed a deceleration in last month’s inflation. Its recent vertical ascent might just need more breathing room. After hovering above 145.10, a sharp fall suggests a mass liquidation from a crowded long trade. As the RSI sank deeply into oversold territory, the price is testing the trough at 140.50 from late September. A valid breakout would put the greenback on a correction course in the medium-term with 138.00 as the target. 144.00 is the first resistance should the price action stabilises.
