CPI Handling, EUR/USD Soared Before 80 Pips Plunge!

<p>&nbsp;The market witnessed turbulent price movements in the New York session yesterday focusing on the published United States (US) inflation data.</p><p><br /></p><p>The annual consumer price index (CPI) reading for July rose to 3.2% from 3.0% the previous month, but fell short of the 3.3% forecast.</p><p><br /></p><p>The US dollar weakened first as soon as the data was published, but after the market digested the data for a while, the US dollar strengthened again until the end of the New York session.</p><p><br /></p><p>Analysts see a tendency for the Federal Reserve (Fed) to maintain policy tightening measures following a re-increase in the inflation rate for the first time after consecutive declines since June 2022.</p><p><br /></p><p><br /></p><p><br /></p><p>You can see the effect on the price movement on the chart of the EUR/USD currency pair which saw your surge reach a high of 1.10650, slightly surpassing last week's high of 1.10400.</p><p><br /></p><p>However, the strengthening US dollar made the price plunge back below the 1.10000 level and reached the 1.09800 level before closing trading in the New York session around that time.</p><p><br /></p><p>The price jump was seen testing the Moving Average 50 (MA50) support level on the 1-hour time frame on the EUR/USD chart which continued in the Asian session this morning.</p><p><br /></p><p><br /></p><p>The price is hovering slowly below the 1.10000 level with the expectation of lower declines to continue after this.</p><p><br /></p><p>The 1.09000 zone is seen to be the focus to target which is still the price support zone before.</p><p><br /></p><p>A break through the zone would expect a decline towards around 1.08000 to record a recent 8-week low.</p><p><br /></p><p>But beware in the event of a rebound at the end of this week's sessions, the price could rise again above the 1.10000 level and head towards the highs reached during yesterday's surge.</p><p><br /></p><p>If it goes higher beyond that level it will be a bullish signal for the price with the target being directed at the height of 1.11400.</p>