On Wednesday, the EUR/USD currency pair bounced from the session lows of about 1.1621 to trade at about 1.1693 after the latest U.S. data. The currency pair also completed an upward breakout from a descending channel formation in the 60-minute chart.

The pair has now advanced to trade a few levels above the 100-hour moving average line. As a result, the currency pair has broken into the overbought levels of the 14-hour RSI.

EUR/USD Fundamentals Overview

From a fundamental perspective, the EUR/USD currency pair trades during a relatively busy period in both markets. In the EU, Germany’s exports for October outperformed the expected (MoM) change of -0.2%, with a change of 0.1%. On the other hand, imports for the period fell short of 0.2%, with a change of -1.2% (MoM).

Trade balance for the month increased to EUR 16.9 billion, up from EUR 15.3 billion, beating the forecasted balance of EUR 15.2 billion. Earlier in the week, the country’s seasonally adjusted industrial production for October also came in better than expected, with 1.8%, versus a forecast of -0.4%.

In the U.S., the Federal Reserve lowered the base interest rate by 25 basis points to 3.75%, down from 4%, in line with expectations. On the other hand, the employment cost index for Q3 missed the expectation of 0.9%, with a change of 0.8%.

The monthly budget statement for November exceeded the expectation of $-205 billion, with $-173 billion, down from the previous update of 4198 billion. Looking forward, traders will be waiting for the U.S. initial jobless claims data on Thursday.

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

Technically, the EUR/USD currency pair has completed an upward breakout from a descending channel formation in the 60-minute chart. The 14-hour RSI also supports a bullish bias after breaking into overbought conditions.

Therefore, the bulls will look to extend the current rebound towards 1.1729 or higher to 1.1765. On the other hand, the bears will look to pounce on pullbacks at about 1.1655 or lower at 1.1621.

EUR/USD Technical Analysis (the Daily Chart)

In the daily chart, the EUR/USD currency pair has also completed an upward breakout from a descending channel formation. The 14-day RSI also supports a strong bullish bias as it moves closer to overbought conditions.

Therefore, the bulls will look to extend the current rebound towards 1.1814 or higher to 1.1920. On the other hand, the bears will look to pounce on profits at about 1.1581 or lower at 1.1464.