The US dollar softened over profit-taking after the Fed sped up tapering as expected. The pair has found support over the psychological level of 0.7000.
A break above the supply zone at 0.7170 is a show of strength from the buy-side, forcing the shorts to cover. An overbought RSI has limited the upward extension.
The 50% (0.7090) Fibonacci retracement level attracted some buying interest. Further down, the 61.8% (0.7060) level is the second line of defense. A rally above 0.7180 may send the pair to 0.7270.
