Higher CPI
The EURUSD is running to the upside after the much stronger CPI data. The pair is down testing its 200 hour moving average of 50% retracement of the move up from the May for the low at 1.2077 and 1.20815 respectively. There is a initial bounce on the first test. A break below - and staying below - should solicit more selling today.
PS. The price did break below the two technical levels to a session low 1.20712 but is bouncing back higher on the initial disappointment disappointment. The 1.2100 and the broken 38.2% retracement at 1.21042 should provide some resistance.
Should the price cracked below the aforementioned support targets again, the 61.8% retracement of the move up from the May 5 low comes in at 1.20588. The 100 day moving averages at 1.20451.
The US stocks have moved lower with the NASDAQ index down -200 points. The the NASDAQ futures are faring worse with the decline of -187.5 points. The S&P index is trading down -35 points.
In the US debt market, the 10 years up two basis points at 1.641%. The two years up 0.6 basis points to 0.164%
