EUR/USD retreats below 1.1300 despite poor US CPI

The selling pressure in the greenback is everything but abated today, lifting EUR/USD to fresh highs in the 1.1320 area albeit losing some ground afterwards.

EUR/USD stronger on data

The pair’s upside has gathered further traction today after US inflation figures showed consumer prices have come in flat MoM in July and have risen at an annualized 0.8%, both prints coming in below initial estimates.

Further data saw mixed results from the housing sector, where Housing Starts rose more than expected 2.1% to 1.211M units during last month and Building Permits have contracted 0.1% to 1.152M units during the same period.

Later in the session, US Industrial Production is due along with Manufacturing Production, Capacity Utilization and  the speech by Atlanta Fed D.Lockhart (non voter, neutral).

EUR/USD levels to watch

The pair is now up 0.97% at 1.1291 and a break above 1.1306 (base of the 8-month rising channel) would open the door to 1.1346 (61.8% Fibo of the May-June down move) and finally 1.1434 (high Jun.24). On the flip side, the immediate support aligns at 1.1179 (38.2% Fibo of the May-June down move) ahead of 1.1115 (20-day sma) and then 1.1092 (200-day sma).