The US dollar tumbled after Fed Chairman Jerome Powell said it was too early to withdraw support. The pair has seen solid buying interest at the daily support (1.3600).
After a short-lived consolidation below the key resistance at 1.3770, a bullish breakout is a sign of commitment from the buy-side. An overbought RSI may cause a limited pullback with buyers expected around 1.3700.
As sellers reverse their positions, 1.3820 would be the next target and its breach could open the door to July’s peak at 1.3980.