On Wednesday, the EUR/USD currency pair bounced from the session lows of about 1.1567 to trade at about 1.1676. The currency pair also completed an upward breakout from a slightly ascending channel formation in the 60-minute chart.
The currency pair has now advanced to trade several levels above the 100-hour moving average line. As a result, the pair has since rallied 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. On Wednesday, the EU’s harmonized index of consumer prices for July matched the forecasted (MoM) forecast of 0.2%. The core harmonized index of consumer prices for the period was also in line with the estimate of 2.5%.
Earlier in the week, Germany’s ZEW survey for the current situation in August came in better than expected, at -61.1 versus a forecast of -68.8. The ZEW survey for economic sentiment for the period also outshone the forecast of 30, with a reading of 34.2. Elsewhere, the EU’s ZEW survey for economic sentiment for the period beat the forecast of 25.4, with a reading of 31.4.
In the US, the building permits for July came in better than expected, at 1.443 million versus a forecast of 1.37 million, up from 1.374 million in June. On the other hand, the housing starts for the period fell short of the forecasted reading of 1.35 million, with a tally of 1.239 million, down from 1.415 million.
The industrial production for July also missed the expected (MoM) change of 0.3%, with a change of 0.2%, while the pending home sales for the period fell short of 0.3%, with a change of -2.3% (MoM).
EUR/USD Technical Analysis (the 60-min Chart)
Technically, the EUR/USD currency pair has completed an upward breakout from an ascending channel formation in the 60-minute chart. The 14-hour RSI also supports a bullish bias after entering overbought conditions.
Therefore, the bulls will look to stretch the current rally towards 1.1716 or higher to 1.1756. On the other hand, the bears will look to pounce on pullbacks at about 1.1635, or lower at 1.1595.
EUR/USD Technical Analysis (the Daily Chart)
In the daily chart, the EUR/USD currency pair trades within an ascending channel formation. The 14-day RSI also supports a long-term bullish bias as it advances into overbought conditions.
Therefore, the bulls will look to extend the current run of gains toward 1.1787 or higher to 1.1887. On the other hand, the bears will look to pounce on pullbacks at about 1.1567, or lower at 1.1460.