Eurozone CPI announced %3.0 from %2.2, beats %2.7 expectations by far, and reached the highest level since 2011. Core CPI is more close to expectations but increases from %0.7 to %1.6. Even with most of the increase caused by temporary factors, ECB may have to adjust its forecast in the September meeting. Discussion about PEPP purchases may become more heated after the data.
EURUSD is having a good run since Powell’s Jackson Hole speech. Dovish Powell, lots of bad economic data surprises and now high Eurozone CPI is pushing the price higher. The bearish trend channel’s upper line is about to be tested and if EURUSD is able to break through, more upside may become a possibility. Above 1.1850, Fibonacci levels 1.1895, 1.1966, and major 1.20 resistances may be targeted.
If EURUSD cannot break the 1.1850 resistance, 1.1808 – 1.1750 level can be followed as possible supports.