The EUR/USD currency pair plunged on Tuesday to reach new weekly lows of about 1.1215 after the release of the Eurozone trade balance for May 2019 and the ZEW Survey. 

The EU Trade Balance was relatively impressive after beating expectations but the market appears to have shifted optimism towards the greenback after the US Retail Sales also beat expectations in the afternoon.

The currency pair continues to trade under immense downward pressure following the latest economic events and this could continue through the rest of the week.

EUR/USD Fundamentals Overview

From a fundamental perspective, the EUR/USD currency pair is trading at the back of several economic events. Earlier on, the Eurozone reported a trade balance for May of EUR 20.2B topping expectations of EUR 17.9B. However, ZEW Survey Economic Sentiment for July beat with -20.3 versus an expectation of -20.9 points.

In the afternoon, the US Retail Sales beat expectations of 0.1% growth for June with 0.4% growth on a MoM basis. However, US Import and Export Price Indexes missed expectations of -0.7% and -0.2%, respectively on a MoM basis with -0.9% and -0.7%.

This data helped the Euro to reclaim some ground against the greenback ahead of key Fed speeches.

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

From a technical viewpoint, the EUR/USD currency pair is trading on a sideways channel coming off a bearish run. The pair appears to be pegged right above the 1.1210. 

As we move towards mid-week, the bears will be more optimistic as they target the pullback around 1.1215 or lower at 1.1196. On the other hand, the bulls will be targeting profits at around 1.1238 or high at around 1.1256. Currently, the Relative Strength Index Indicator (RSI) appears t have crossed to the oversold zone, which could trigger a rebound.

EUR/USD Technical Analysis (the Daily Chart)

In the daily chart, the EUR/USD currency pair appears to be trading within a descending channel that dates back to last year. Both the 100-day and the 200-day moving average lines are above the current level of the pair and continue to support a bearish bias scenario.

Fro a long-term perspective, the bulls will be targeting profits at around1.1290 while the bears will look to pounce by aiming for profits around the 1.1128 level.

In summary, the EUR/USD currency pair appears to be exp[ecriencing a long-term bearish bias but in the short-term, the bulls could look to target the next rebound after the latest pullback pushed the pair below the 1.1220 level.