The EUR/USD currency pair on Friday bounced off the 100-hour SMA to surge towards current weekly highs of about 1.1453 following the latest round of US data. The currency pair has been trading within an upward trending curve since the start of the month after performing a short-term reversal in late June.

The currency pair has now surged towards overbought levels of the 14-hour RSI in the 60-min chart. This could trigger a short-term pullback early next week.

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 Thursday, the ECB made a decision to keep the base interest rate unchanged at 0.0%. The deposit rate also remains at -0.5%, which matched expectations. Industrial production for May missed the (MoM) expectation of 15% with 12.4%, earlier in the week. The ZEW Survey-economic sentiment for July also came short of 78.1 with 59.6. On Friday, the consumer price index for May and June matched expectations. Construction output was also in line.

In the US, the initial jobless claims for the week ending July 10 missed the expectation of 1.25M with 1.3M claims. On the other hand, continuing claims of 17.338M beat 17.6M. The retail sales control group posted a change of 5.6% for June, better than the expectation of 3.6%. General retails sales and retails ales ex-autos beat 5% each with 7.5% and 7.3%, respectively. On Friday, building permits for June missed expectations while housing starts outshone estimates.

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

Technically, the EUR/USD currency pair appears to be trading within a rising curve in the 60-min chart. This indicates a short-term bullish bias in the market sentiment. It comes at the back of a slight pullback towards the end of last month.

The bulls will be targeting short-term profits at around 1.1453 or higher at 1.1496. On the other hand, the bears will look to pounce for pullback profits at around 1.1386 or lower at 1.1338.

EUR/USD Technical Analysis (the Daily Chart)

In the daily chart, the EUR/USD currency pair appears to be facing strong resistance around the 1.1425 level. This comes at the back of a major rebound following the plunge experienced in March.

The bulls will be targeting long-term profits at around 1.1548 or higher at 1.1660. On the other hand, the bears will look to pounce for long-term pullback profits at around 1.1322 or lower at 1.1201.