The EUR/USD currency pair on Tuesday bounced off the key support at about 1.0715 to trade at about 1.0734 after the latest round of data. The currency pair continues to trade slightly off the ascending channel formation after completing a downward breakout earlier in the session.

The pair also appears to have found strong support at the 100-hour moving average line in the 60-min chart. Tuesday’s rebound prevented the currency pair from falling into the oversold levels of the 14-hour RSI.

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 Tuesday, the preliminary EU gross domestic product for Q4 matched the forecasted (YoY) change of 1.9% with 1.9%. The (QoQ) equivalent also came in line with the estimate of 0.1%. On the other hand, the preliminary employment change for the quarter beat the (QoQ) expectation of 0.3% with a change of 0.4%, while the (YoY) equivalent outshone the forecast of 0.9% with a change of 1.5%.

In the US, the consumer price index for January came in higher than expected with a change of 6.4% (YoY) compared to a forecast of 6.2%. The (MoM) equivalent was in line with the estimate of 0.5%. On the other hand, the consumer price index ex-food and energy came in at 5.6% compared to a forecast of 5.5%, while the (MoM) equivalent matched the expected change of 0.4%.

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

Technically, the EUR/USD currency pair appears to be about to resume the ascending channel formation in the 60-min chart. This indicates an attempt by the bulls to retake control of the currency pair.

Therefore, they will be targeting extended gains at about 1.0751 or higher at 1.0770. On the other hand, the bears will be targeting potential pullback profits at about 1.0715 or lower at 1.0694.

EUR/USD Technical Analysis (the Daily Chart)

In the daily chart, the EUR/USD currency pair appears 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 extend the current run of declines toward 1.0596 or lower to 1.0460. On the other hand, the bulls will look to pounce on profits at about 1.0846 or higher at 1.0987.