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May 09 - 01:55 PM

EUR/USD - Longs Play Defense, CPI Risk Looms

By Christopher Romano  —  May 09 - 01:25 PM
  • EUR/USD slid lower overnight, NY opened near 1.0980, slide extended

  • Investors sought safety, US$ & yen bought; EUR/JPY fell to 147.895 on EBS

  • US rate US2YT=RR gains, equity ESv1 & oil LCOc1 drops soured risk

  • EUR/USD fell away from the 21-DMA, hit 1.0941 on EBS, neared 1.0965 late

  • Some U$ weakness, EUR/JPY bounce off low helped EUR/USD's late day bounce

  • Techs lean bearish; daily, monthly RSIs falling, pair below 10- & 21-DMAs

  • May's monthly inverted hammer candle reinforces bearish signals

  • US April CPI & its impact on Fed policy is a key risk for Wednesday

  • For more click on FXBUZ

Source:
Refinitiv IFR Research/Market Commentary

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