The US dollar continues to soften from weaker-than-expected consumer sentiment in August.
The euro bulls gained confidence after the single currency rallied above 1.1800, an important supply zone from the mid-August sell-off. Now, this has turned into an area of congestion along a rising trendline. Furthermore, it is a clear indication of a bullish bias in the short term.
However, an overbought RSI may lead to a limited pullback. A bounce off 1.1795 would propel the pair to the daily resistance at 1.1900.
