With both key moving averages now broken, sellers are gaining more control in the short term. The next major downside target comes in at the 100-day moving average near 1.17084.

That level is particularly important technically. Back on May 6, the 100-hour, 200-hour, and 100-day moving averages were all tightly converged near 1.1708 before the pair broke sharply to the upside. That breakout fueled a rally to a high of 1.17956 later that same day.

Since then, the EURUSD has largely consolidated between support near 1.1722 and resistance up toward the 1.17956 high, with more recent rallies stalling around 1.1787. Importantly, throughout that consolidation phase, the pair had remained above both the 100-hour and 200-hour moving averages. The current break below those levels represents a notable change in the technical landscape and increases the risk of a deeper corrective move lower.

After an initial dip following the CPI report, US yields have reversed course and moved back higher as traders reassess the inflation implications and Fed outlook. The 2-year yield — which is particularly sensitive to monetary policy expectations — is now approaching the 4.0% level, trading at 3.9935%, up 4.6 basis points on the day.

The benchmark 10-year yield has also pushed higher, rising 4.1 basis points to 4.453%, reflecting renewed concerns that inflation pressures may remain sticky for longer than hoped.

Meanwhile, the 30-year bond yield has climbed back above the key 5.0% threshold, trading at 5.0179%, up 3.1 basis points. The move back above 5% underscores persistent long-term inflation and borrowing-cost concerns in the bond market.

The U.S. Treasury will auction 10-year notes at 1 PM ET.

Crude oil is also moving back higher with the price currently at $101.57, up $3.48 on the day.