The EUR/USD currency pair on Thursday bounced off 4-week lows of about 1.0990 and rallied to top 1.1020 following the latest round of Euro data. The currency pair recently completed a XABCD double-top reversal pattern following an extended period of bull-run.
The pair now could target a rebound after trading under intense bearish pressure since the start of the month. The latest round of economic data could be the catalyst for another bull-run.
EUR/USD Fundamentals Overview
From a fundamental perspective, the EUR/USD currency pair is trading at the back of a busy week in both the US and the Eurozone. Besides that obvious issues surrounding Brexit and the US-China trade talks, this week’s economic data could signal the next direction the currency pair could take.
The EU Gross Domestic Product change for Q3 (YoY) beat expectations of 1.1% with 1.2% on a seasonally-adjusted basis. The (MoM) equivalent was in line with expectations at 0.2%. On the other hand, employment change for Q3 missed the expectation of 0.2% with a 0.1% change (QoQ).
In the US, the Producer Price Index for October beat the expectation of 0.9% with 1.1% on a (YoY) but the seasonally-adjusted core Consumer Price Index missed 265.106 with 265.011. The general CPI beat the expectation of 1.7% with 1.8% (YoY) while the CPI ex-food and energy 2.4% with 2.3% (YoY).
EUR/USD Technical Analysis (the 60-min Chart)
Technically, the EUR/USD currency pair appears to be trading under strong bearish pressure in the short-term following a XABCD reversal pattern. The currency pair is now trading close to the boundary of the normal trading zone and overbought levels following today’s rebound, which means it could be a while before the next pullback.
Therefore, the bears will be targeting short-term profits at around 1.1005 or lower at 1.0990. On the other hand, the bulls will be targeting a continuation of the current rebound towards 1.1037 or higher at 1.1061.
EUR/USD Technical Analysis (the Daily Chart)
In the daily chart, the EUR/USD currency pair continues to trade in a descending channel, which indicates a bearish bias in the long-term trading market. The currency pair has recently bounced off the overbought levels of the RSI indicator on the daily chart triggering the current pullback.
Therefore, the bears will be targeting long-term profits at around 1.0909 or lower at 1.0891. On the other hand, the bulls will be looking to pounce on the next rebound by targeting profits at around 1.1115, 1.1183 or higher at 1.1277.