EUR/USD aims for 20-period SMA at 1.09200 ahead of Eurozone Consumer data

EUR/USD has broken its continuous losing streak after breaking above the 1.0860 minor support area. This is after recording losses for two consecutive days. The good news is the bulls have managed to support momentum above the 20-day SMA. However, the trading pair is aiming to test 1.0900. The 1.0860 is acting as a minor support area and in case of further losses below this support area, the Euro could go into further losses potentially touching 1.0800. 

Short-term risks are tilting towards the downsides. Major technical indicators are indicating bearish movements and suggesting the difficulty of testing 1.0900. The bearish momentum will continue until the bulls can test 1.0900, from where the bulls can take over. This is mainly because the Euro has to overcome the 20-day SMA on the 4-hour time frame and break above 1.0920. If the currency can meet these three conditions, then buyers will have gained stronger support to sustain upward momentum. The USD is still strong owing its momentum from strong and robust economic data. Unlike the Eurozone, where inflation data is a mixture of economic slowdowns in Spain and Germany’s economic rebound. 

Yesterday’s data revealed Germany’s inflation rose by a slight margin in June, where the yearly rate increased from 6.1% to 6.4%. Factors like reducing the cost of transport and energy contributed to the increase. As analysts wait for the Eurozone Consumer Price Index Data, it is evident that high inflation could continue into July.