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.”