The US dollar extended gains helped by upbeat PMIs in February. On the daily chart, a bearish MA cross after the price pierced the moving averages suggests that a correction is due after a three-month long rally. The pair is grinding the demand zone around 1.0610 from last January’s bullish breakout. 1.0720 is the closest hurdle and only a clean break above 1.0790, a twice-tested resistance, would turn short-term sentiment around. Failing that, the single currency could sink towards the critical floor at 1.0500.
