The Euro is standing at the back foot in early European trading ahead of EU inflation data.
Thursday’s close in red after upside rejection and signal of bull-trap above falling 10DMA, weighs on near-term action, along with bearish daily techs (momentum remains deeply in the negative territory and MA’s are in bearish configuration).
Forecasts for soft June inflation figures add to a negative near-term tone, threatening of full retracement of short-recovery (1.1772/1.1850) that would keep in play risk of testing key support at 1.1704 (2021 low, posted on Mar 31).
Falling 10DMA (1.1827) marks a solid barrier, which is expected to cap and keep near-term bias with bears.
Only lift and close above 20DMA (1.1866) would sideline bears and shift focus higher.
Res: 1.1819, 1.1828, 1.1850, 1.1866.
Sup: 1.1781, 1.1772, 1.1737, 1.1704.
