EUR/USD has completed the head and shoulder pattern on the daily chart after US CPI and core CPI printed higher than estimates.
By no means have the upbeat data brought September rate hike back on the table. No one in the market expects Fed to move rates next week.
Nevertheless, dollar spiked. Two things have happened. Firstly, EUR/USD has suffered a bearish break from the 100-pip range of 1.12-1.13 and secondly, the pair is now flirting with the H&S neckline.
If the day end close is below neckline, then prices could revisit 1.1160 levels next week.