Hawkish comments by Fed's Ms Brainard yesterday, boosted the Dollar as sent US Bond Yields higher, to which the pair is sensitive. Ms Brainard talked of "stronger action" on rates if this is warranted by the inflation data, noting that bringing inflation down is of "paramount importance". She also sees aggressive reduction of the balance sheet, which could begin as early as the upcoming meeting in May. 
Investors will have more opportunities to get some more insights into the officials' thinking, starting today with the release of the minutes from the March policy meeting (18:00 GMT), while a series of Fed speakers are on tap tomorrow – including prominent hawk and voter Mr Bullard.
Markets also grapple with the prospect of further US sanctions against Russia, while the European commission proposed yesterday a fifth package of restrictions that includes a ban on coal imports, but no oil embargo. 
These factors help the pair into its fourth straight profitable day, following a shallow correction after the nearly seven year highs (125.11) last week. The slide stopped ahead of 38.2% Fibonacci of the 2022 Low/High rise, which reinforces chances for a higher high, although fresh impetus will likely be required for moves beyond 125.86.
Another pullback towards mid-122.00s before that, would definitely not be surprising, but a test of 120.66 does not seem easy under these conditions and the area until the EMA200 (119.40-30) seems well protected.
Senior Market Specialist
Nikos Tzabouras is a graduate of the Department of International & European Economic Studies at the Athens University of Economics and Business. He has a long time presence at FXCM, as he joined the company in 2011. He has served from multiple positions, but specializes in financial market analysis and commentary.
With his educational background in international relations, he emphasizes not only on Technical Analysis but also in Fundamental Analysis and Geopolitics – which have been having increasing impact on financial markets. He has longtime experience in market analysis and as a host of educational trading courses via online and in-person sessions and conferences.
Retrieved 06 Apr 2022 https://www.federalreserve.gov/newsevents/speech/brainard20220405a.htm
Retrieved 29 Sep 2022 https://ec.europa.eu/commission/presscorner/detail/en/STATEMENT_22_2281