Following the much stronger CPI data yesterday, you can easily see that the market was positioned for a weak data point, thinking that inflation may have peaked in July. The August data showed that was not the case, and could argue that the Fed will continue to stay hawkish and push rates possibly above 4%.
The market was wrong footed, and the reversal from the 2022 trend line suggests the bearish trend in EUR/USD is set to continue. A close below parity may put the .9864 52 week low back in play. below that would target the 127% extension of the last two week range and the 127% extension of the January 2017 lows to February 2018 highs. Both those levels come in around .9760.
