The EUR/USD currency pair on Thursday bounced off close to the current yearly lows of about 1.1700 to trade 1.1775. This came following the latest round of US data. The currency pair continues to trade within a descending channel formation in the 60-min chart.
Thursday’s rebound pushed the currency pair above the 100-hour SMA line. It continues to trade below the 200-hour SMA. The rebound also pushed the pair towards the overbought levels of the 14-hour RSI. This could trigger a short-term pullback.
EUR/USD Fundamentals Overview
From a fundamental perspective, the EUR/USD currency pair is trading at the back of a relatively busy period in the US market. On Thursday, the US ISM Manufacturing PMI for March beat the expectation of 61.3 with 64.7. The ISM Manufacturing Employment Index outshone 53 with 59.6 while Manufacturing Prices Paid slightly beat 85 with 85.6. On the other hand, the initial jobless claims for the week ending March 26 missed the expectation of 680k claims with a claim count of 719k. The continuing claims for the preceding week came in at 3.794 million versus an expected tally of 3.775 million.
Earlier in the week, the US ADP employment change for March missed the expected change of 550k jobs with a job count of 517k. On the other hand, the Chicago Purchasing Managers’ Index for the month outshone 60.7 with 66.3 while pending home sales for February fell 10.6% (MoM) compared to an expected decline of 2.6%. In the EU, the preliminary core CPI for March missed the (YoY) expectation of 1.2% with a change of 0.9%. General CPI was in line at 1.3%.
EUR/USD Technical Analysis (the 60-min Chart)
Technically, the EUR/USD currency pair appears to be trading within a descending channel formation in the 60-min chart. This indicates a significant short-term bearish bias in the market sentiment.
The bulls will be looking to extend the current rebound towards 1.1813 or higher to 1.1852. On the other hand, the bears will target short-term profits at around 1.1743 or lower at 1.1701.
EUR/USD Technical Analysis (the Daily Chart)
In the daily chart, the EUR/USD currency pair appears to have recently made a bearish breakout from an ascending channel formation. The pair is now pinned just above the 38.20% fib level on the way down.
The bulls will target long-term profits at around the 23.60% fib level at 1.1942 or higher at 1.2179. On the other hand, the bears will target profits at 50% and 61.80% fib levels at 1.1500 and 1.1291, respectively.