The EUR/USD came under heavy bearish pressure and dropped toward 0.9650 after the US inflation data. The Core Consumer Price Index (CPI), which excludes volatile food and energy prices, climbed to 6.6% on a yearly basis in September from 6.3%, reviving hawkish Fed bets.
The EUR/USD pair is currently hovering around 0.9650, maintaining its near-term bearish stance. The 4-hour chart shows that it broke below a mildly bearish 20 SMA and also below the 23.6% Fibonacci retracement of its latest daily rally at 0.9690.
The Momentum indicator barely retreats from its midline, while the RSI indicator is stable at around 39, suggesting sellers are not yet strong enough. However, a bearish extension seems likely, given the broad greenback strength.
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