The EUR/USD currency pair on Wednesday bounced off the trendline support at around 1.2100 to top 1.2200 after the latest US data. The currency pair continues to trade within an ascending channel formation in the 60-min chart.
The pair is now pinned between the 100-hour and the 200-hour SMA lines. It continues to trade centrally in the 14-hour RSI. This trend could continue through Thursday and early next week.
EUR/USD Fundamentals Overview
From a fundamental perspective, the EUR/USD is trading at the back of a relatively busy period in the US market. On Wednesday, the US durable goods orders for November beat the expected change of 0.6% with 0.9%. On the other hand, nondefence capital gods orders ex-aircraft missed the expected change of 0.6% with a change of 0.4%. Personal spending for November also came short of -0.2% with -0.4% while personal income missed -0.3% with -1.1% (MoM). core personal consumption expenditures price index for November missed both the (MoM) and (YoY) expectations of 0.1% and 1.5%, respectively with 0.0% and 1.4%.
Elsewhere, the Michigan Consumer Sentiment Index for December missed the expectation of 81.3 with 80.7. New home sales for November missed the (MoM) expectation of 0.995M with 0.841M while the housing price index for October rose 1.5% (MoM) compared to the previous change of 1.7%. Both the initial and continuing jobless claims beat the expectations of 885k and 5.558M with 803k and 5.337M, respectively.
EUR/USD Technical Analysis (the 60-min Chart)
Technically, the EUR/USD currency pair appears to be trading within an ascending channel formation in the 60-min chart. The pair is currently pinned between the 100-hour and the 200-hour SMA lines.
The bulls will be looking to extend the current rebound towards 1.2226 or higher to 1.2267. On the other hand, the bears will look to pounce on short-term pullbacks at around 1.2141, or lower at 1.2104.
EUR/USD Technical Analysis (the Daily Chart)
In the daily chart, the EUR/USD currency pair appears to be trading within a sharply rising curve amid increased bullish pressure. This indicates a strong long-term bullish bias in the market sentiment. The currency pair is also closer to overbought levels of the 14-day RSI.
The bulls will be looking to extend the current bull-run towards 1.2394 or higher to 1.2563. On the other hand, the bears will target long-term pullback at around 1.2023 or lower at 1.1810.