EUR/USD resumes fall after short-lived spike

EUR/USD turned back south following a short-lived spike triggered by US inflation figures.

EUR/USD managed to briefly rise above 1.10 and hit a session high of 1.1015, before making an U-turn and falling to a fresh daily low of 1.0978. The pair was last trading at 1.0983, down 0.17% on the day.

US data showed CPI rose 0.3% in September and 1.5% YoY, its  largest 12-month increase since October 2014, both matching expectations. The core CPI, which excludes, volatile categories such as food and energy, rose 0.1% in September and 2.2% YoY, slightly below the 2.3% expected.

However, lackluster CPI figures seem not enough to diminish expectations the Fed is moving closer to another rate hike this year.

EUR/USD technical levels

In terms of technical levels, immediate supports are seen at 1.0960 (Jul 27 low), 1.0911 (Jun 24 low) and 1.0821 (Mar 10 low). On the flip side, resistances line up at 1.1025 (Oct 18 high), 1.1067/75 (Oct 12 high/10-day SMA), 1.1141 (Oct 11 high) and then 1.1170/72 (100-day SMA/200-day SMA).