EURUSD breaks below 0.9950 ahead of US CPI.

• Euro and Swiss franc among the worst performers in the market.
• The US inflation data is coming, with great potential for an impact on the markets.
• EURUSD negative tone, critical support at 0.9900.

EURUSD finds no support ahead of US inflation data and extends bearish run. The pair fell to 0.9935, the lowest level since Monday and remains near the lows with a marked bearish momentum.

Light, camera… IPC

The EURUSD pullback comes without a trailing factor and is being accompanied by a drop in the EURGBP and EURCHF, although the Swiss franc is also losing ground against the dollar.

The dollar is strong in the market before the critical data. The treasury bond yields they operate stable with the 10-year bond yielding 4.10% and the 2-year bond 4.62%. Wall Street futures show a small rise after yesterday’s drop.

At 13:30 GMT the Consumer’s price index (CPI) of the US for October, which is where all eyes are pointing and that its figures can generate a lot of noise in the market. The annual CPI is expected to stand at 8% after 8.2% in September and the core index to go from 6.6% to 6.5%.

No power at 1.0100, support at 0.9900/05

The EURUSD decline is already a hundred pips from the day’s high. In case of extension, the 0.9900 area appears as a critical level, which in addition to being a round number, contains the 20-day moving average, and several horizontal resistances. Losing that level could expect more downward pressure.

The pair is falling for the second day in a row, after failing to break above 1.0095/1.0100 this week. In case of being able to overcome this area, the euro would be enabled for an upward extension.

Technical levels