The US dollar climbed after the PCE accelerated in January. On the daily chart, the pair is still probing bids near January’s low of 1.1850. The latest bounce came to a halt in the supply zone 1.2150 from the sell-off in mid-February. Then a drop below the psychological level of 1.2000 at the base of a former bullish engulfing candle shows that the path of least resistance remains down. The recent swing low of 1.1920 is the next support and its breach would expose the critical floor at 1.1850. 1.2040 is the closest resistance.
