EUR/USD to extend its decline on a break below 1.2070 behind soaring US inflation
|The EUR/USD pair is trading in the 1.2090 price zone after posting a weekly low of 1.2071 with the release of US inflation data. EUR/USD is technically bearish and could fall further once below 1.2070, Valeria Bednarik, Chief Analyst at FXStreet, reports.
See: EUR/USD set to plummet towards the 1.15 mark – Danske Bank
The US Consumer Price Index jumped to 4.2% YoY in April
“The US annual Consumer Price Index hit 4.2%, higher than the 3.6% expected. The core reading jumped to 3%, also surpassing expectations.”.
“Germany published April inflation figures, which showed that the annual CPI was up 2% as expected.”
“The near-term picture is bearish, as the 4-hour chart shows that technical indicators accelerated north well into negative levels, without signs of giving up.
“Further declines are to be expected on a break below the 1.2071 daily low.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.