The EUR/USD currency pair on Friday bounced off the 100-hour moving average line to trade above 1.000. However, the currency pair failed to retest the current weekly highs of about 1.0035 after the rebound.

The pair continues to trade within a gently ascending channel formation in the 60-min chart. Friday’s rebound pushed the currency pair towards the overbought conditions of the 14-hour RSI, before pulling back in the afternoon session.

EUR/USD Fundamentals Overview

From a fundamental perspective, the EUR/USD currency pair is trading at the back of a relatively busy period in both markets. On Friday, the EU private loans for July missed the expectation of 4.7% with a change of 4.5%, while the M3 Money Supply for the period came short of the (YoY) forecast of 5.6% with a change of 5.5%. Earlier in the week, the preliminary S&P Global Services PMI for August missed the expectation of 50.5 with 50.2, while the Manufacturing equivalent beat 49 with 49.7. The Composite PMI also outshone 49 with 49.2.

In the US, the core personal consumption expenditures price index for July missed the (MoM) estimate of 0.3% with a change of 0.1%. The (YoY) equivalent also came short of 4.4.7% with 4.6%.  Elsewhere, personal spending missed the expectation of 0.4% with a change of 0.1%, while personal income failed to match the (MoM) forecast of 0.6% with a change of 0.2%. Earlier in the week, the preliminary Q2 GDP outperformed estimates on both (QoQ) and annualised basis.

EUR/USD Technical Analysis (the 60-min Chart)

Technically, the EUR/USD currency pair seems to be trading within a gently ascending channel formation in the 60-min chart. This indicates a slight short-term bullish bias in the market sentiment.

Therefore, the bulls will be targeting short-term profits at about 1.0039, or higher at 1.0083. On the other hand, the bears will look to pounce on potential pullbacks at about 0.9963, or lower at 0.9913.

EUR/USD Technical Analysis (the Daily Chart)

In the daily chart, the EUR/USD currency pair seems to be trading within a descending channel formation. This indicates a significant long-term bearish bias in the market sentiment.

Therefore, the bears will be looking to stretch the current run of declines toward 0.9810 or lower to 0.9612. On the other hand, the bulls will be targeting rebound profits at about 1.0182, or higher at 1.0371.