EUR/USD falls below 1.1200 after US CPI

EUR/USD fell sharply and dropped below 1.1200 as the dollar received a boost from better-than-expected US inflation data.

US consumer price index increased 0.2% in August from a month earlier, beating expectations of a 0.1% rise. Excluding volatile categories such as of food and energy, prices rose 0.3% (exp +0.2%), the largest one-month increase since February.  

EUR/USD extended intraday losses though the 100-day SMA and struck a fresh 10-day low of 1.1194 in recent dealings. At time of writing, the pair is trading at 1.1202, recording a 0.35% loss on the day.

Higher-than-expected inflation numbers keep expectations of another Fed’s rate hike before the year-end alive, boosting the greenback

EUR/USD levels to watch

In terms of technical levels, immediate supports could be found at 1.1145 (200-day SMA) and 1.1100 (psychological level). On the flip side, resistances are seen at 1.1249 (Sep 16 high), 1.1284 (Sep 9 high) and 1.1326 (Sep 8 high).