FXstreet.com (Barcelona) - The EUR/USD plunged from 1.2330/40 area down to 1.2276 low during the European session as lower hopes of QE to boost the global economy are strengthening the greenback ahead of the release of the US CPI inflation report, industrial production and the NY Empire State Manufacturing Index in the US.

US MBA mortgage applications for the week ending at Aug-10 were just released, showing a decline of -4.5%, following another decline of -1.8% in the week before.

The EUR/USD is doing a shy bounce to 1.2280 area, still pressured to the downside. “Loss of 1.2300 support, seen as alternative scenario, to turn focus towards 1.2240, 10 Aug low, as larger picture remains bearish”, wrote Windsor Brokers analyst Slobodan Drvenica.