Softer U.S. CPI data weakened the dollar, lifting EURUSD to key resistance before sellers pushed it back to moving averages.
EURUSD climbed to 1.1462 after U.S. CPI data came in weaker than expected, reducing bets on near-term Federal Reserve rate hikes. Headline and core inflation both undershot forecasts, easing inflation concerns and pressuring the dollar broadly lower.
The pair tested the 38.2% Fibonacci retracement level at 1.14618 but failed to break higher, attracting sellers. The subsequent pullback brought it to the 200-hour moving average at 1.1423 and the 100-hour MA at 1.1417, where buyers re-emerged, lifting it to 1.1431.
The technical battle leaves the short-term outlook balanced, with key support and resistance levels holding for now. Fed officials have cautioned against overinterpreting a single inflation report, keeping policy expectations in focus.