The EUR/USD currency pair on Wednesday spiked to trade at a new 15-month high of 1.1134 after bouncing off 1.1014. The currency pair has now completed an upward breakout from an ascending channel formation.

The rally has driven the pair several levels above the 100-hour moving average line in the 60-min chart. As a result, the currency pair appears to be trading deep into the overbought 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 the US market. On Wednesday, the US consumer price index for June missed the expected (MoM) change of 0.3% with a change of 0.2%. The (YoY) equivalent also fell short of the forecasted change of 3.1% with a change of 3.0%. The consumer price index ex-food and energy missed both the (MoM) and (YoY) expectations of 0.3% and 5%, respectively with a change of 0.2% and 4.8%.

In the EU, Germany’s harmonised index of consumer prices for June matched the expected change of 0.4% (MoM) and 6.8% (YoY). the general CPI for the period was also in line with the (MoM) and (YoY) estimates of 0.3% and 6.4%, respectively, while the ZEW survey’s current situation for July beat the forecasted reading of -60 with a reading of -59.5.  The economic sentiment for the period fell short of -10 with a reading of -14.7, while the EU’s ZEW survey economic sentiment missed -10.2 with a reading of -12.2.

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

Technically, the EUR/USD currency pair appears to have recently completed an upward breakout from an ascending channel formation. This indicates a significant increase in the short-term bullish bias in the market sentiment. 

Therefore, the bulls will be looking to stretch the current rally towards 1.1180 or higher to 1.1232. On the other hand, the bears will be targeting pullbacks at about 1.1073 or lower at 1.1014.

EUR/USD Technical Analysis (the Daily Chart)

In the daily chart, the EUR/USD currency pair appears to be trading within an ascending channel formation in the 60-min chart. This indicates a significant long-term bullish bias in the market sentiment.

Therefore, the bulls will be looking to extend the current run of gains toward 1.1376 or higher to 1.1613. On the other hand, the bears will look to pounce on profits at about 1.0868 or lower at 1.0631.