EURUSD eyes 1.1790 break to keep controls on US inflation day

EURUSD struggles to keep rebound from monthly low ahead of the key US Consumer Price Index (CPI) data for August. Given the latest chatters over Fed tapering before the next week’s FOMC, today’s US inflation data becomes crucial for the markets. Ahead of the data, the US dollar slips and prints mild gains on the face of the EURUSD. However, failures to cross the 1.1910 horizontal resistance and sluggish oscillators keep sellers hopeful. It should be noted, though, that the 50-DMA and 20-DMA, respectively around 1.1795 and 1.1790, restrict the quote’s short-term downside ahead of July’s low near 1.1790.

If US inflation data rejects tapering concerns with a downbeat figure, the EURUSD prices may recover from the key moving averages. With this, the latest swing high around 1.1850 may offer an intermediate halt before highlighting the 1.1910 horizontal area, comprising multiple tops marked since June 30. In a case where the EURUSD bulls manage to keep reins past 1.1910, odds of its rally towards May’s bottom near 1.1985 and the 1.2000 psychological magnet should return to the charts.