The US dollar jumped after April’s CPI rose 3% YoY nearly doubling markets’ expectations.
The greenback has found solid support after a double-dip at the 61.8% (108.30) Fibonacci retracement level.
The bullish momentum above 109.20 indicates buyers’ commitment to pushing beyond the recent consolidation range. A close above 109.70 could open the path towards 110.50.
With the RSI in the overbought area, profit-taking may briefly drive the price south, 108.65 is the closest support in case of a pullback.
