BUZZ-COMMENT-US inflation signals may trump EUR/USD's bullish techs

Feb 5 (Reuters) - EUR/USD struck a 4-session high after rallying above the 55-day moving average Wednesday but bulls may have a rough road ahead if U.S. inflation markets have anything to say.

U.S. 2-year USBEI2Y=RR and 5-year USDEI5Y=RR inflation break evens recently completed consolidation phases, which resolved with new trend high being made.

The 2-year break even traded its highest since March 6 2023 while the 5-year is hovering just below the 21-month high struck Tuesday.

EUR/USD investors may have to focus more in U.S. CPI due Feb. 12. Data indicating prices are rising faster than expected would validate the break even rates.

That would lead investors to lower their expectations for Fed rate cuts, which would likely increase the dollar's yield advantage over the euro.

Fed SRAM26 and ECB FEIZ5 terminal rate and German-U.S. 2-year yield US2DE2=RR spreads could widen, which could weigh down EUR/USD.

Should prices rise slower than estimated, EUR/USD could rally as the dollar and U.S. interest rate complex sink, which would validate the bullish tech signals in place.

Rising daily and monthly RSIs imply upward momentum is in place. January's monthly bull hammer candle is a very bullish sign and EUR/USD's hold above the 5- and 21-day moving averages reinforce bullish signals.

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