EUR/USD tumbles to lows near 1.1840 on US CPI

The selling pressure around the shared currency is now gathering further traction, forcing EUR/USD to test fresh daily lows near 1.1840.

EUR/USD weaker post-US CPI

Spot met further downside after US headline inflation figures tracked by the CPI rose more than expected at an annualized 1.9% vs. 1.8% initially forecasted. On a monthly basis, consumer prices rose 0.4%, also bettering expectations.

In addition, consumer prices stripping food and energy costs rose 1.7% over the last twelve months (vs. 1.6% expected) and 0.2% inter-month, matching consensus.

The pair is thus prolonging its weekly decline to fresh 2-week lows and is worth noting it has commenced to erode the key 5-month support line.

EUR/USD levels to watch

At the moment, the pair is losing 0.06% at 1.1877 and a break below 1.1839 (low Sep.14) would target 1.1823 (low Aug.31) en route to 1.1816 (5-month support line). On the upside, the next resistance aligns at 1.1932 (10-day sma) followed by 1.2041 (high Sep.11) and finally 1.2092 (2017 high Sep.6).