The US dollar surged after May’s core CPI rose by 3.8% yoy.
The pair remained under pressure after it broke below the lower band of the consolidation range at 0.8930. An oversold RSI has led to a brief whipsaw, which has turned out to be more of an opportunity to sell into strength.
Unless the greenback can lift the offers around the psychological level of 0.9000, the price could see another round of sell-off. February’s low at 0.8870 would be the next target should the pair dip below 0.8920.
