EUR/USD has just broken the 1.1500 level and has made the lowest low since July 2020 as follows:

EUR/USD daily chart

The price has room to go until the 1.1450s at this rate as per the order block highlighted in the summer of the 2020s above. 

EUR/USD H1 chart

On the hourly chart, we can see that the price has retested the prior lows and sank from there on the impulse. Any correction would be expected to be resisted at around 1.1520 and be a fade on rallies.

The moves today come on the back of the  US Consumer Prices surging to their highest rate since 1990 and against market predictions. This has been fueling speculation mid-week that the Federal Reserve may raise interest rates sooner than expected.

The Consumer Price Index jumped 0.9% last month after gaining 0.4% in September and in the 12 months through October, CPI accelerated 6.2%. Analysts had expected on average the rise to be limited to 5.8%.

While the Fed last week restated its belief that the current inflation surge would be short-lived, many investors worry that underestimating price increases could prove to be a costly policy mistake.

More to come...