The US dollar struggles to bounce higher as high inflation seems temporary.
The previous sell-off below the demand area near 109.80 has spoiled the recovery mood. The former support has turned into a resistance and so far capped the greenback’s advance.
The pair is in horizontal consolidation while the RSI returns to neutral conditions.
110.30 would be the next hurdle if the price action turns around. A fall below 109.20 could trigger another round of sell-off towards 108.60, a major support on the daily chart.
