The euro pulled back after the block’s CPI dropped to 0.8% in April. Though the pair maintains its bullish trajectory from the daily chart’s perspective, a healthy pullback seems necessary for buyers to catch up after it rose back above the last leg of sell-off (1.1990).
With an RSI deep in the oversold area, the psychological level of 1.2000 near the 20-day moving average would be a critical level to test buyers’ confidence.
The rally would only resume if the euro climbs back to the previous high at 1.2150.
