The EUR/USD currency pair looks to rebound following the Euro-zone’s latest inflation data, which came short of expectations. Nonetheless, the pair bounced off the crucial resistance zone at around 1.1230 level to rally towards the 1.1245 level.  The pair has been trading within a slightly descending channel of lower lows and lower highs in the two months and this trend seems set to continue through April.

EUR/USD Fundamentals Overview

The EU economic block inflation data missed by 0.8%. The Eurozone CPI also missed expectations on an annual basis coming in at 1.4% versus the forecasted figure of 1.5%. On the other hand, the US PMI Manufacturing Index data is expected next and this could turn the tables in favor of the greenback depending on the outcome.

Meanwhile, the Brexit stalemate continues to tall in the UK Parliament, with no majority vote on anything expected later today. On the other hand, after the disappointments in the US economy in the last couple of weeks, which culminated in the inversion of the yield curve, some positivity is expected at the early stages of April as we build up towards that infamous US-China trade talks.

EUR/USD Technical Analysis (the 240-min Chart)

From a technical perspective, the EUR/USD currency pair appears to be on course to complete an inverted heads and shoulders candlestick pattern, which would suggest a potential reversal of the current bearish trend.

And, when you look at the current momentum as demonstrated using the Relative Strength Index (RSI), the momentum is nowhere close to the overbought region, which means that the current rebound could continue through this week. This makes 1.1350 a realistic target in the intermediate term for the bulls, while the bears will target 1.1190 in the short-term.

EUR/USD Technical Analysis (the Daily Chart)

In the daily chart, the EUR/USD currency pair appears to have bounced off a strong support zone around 1.1220/30 level and now seems headed towards the strong resistance zone at around the 1.1480-1.1530 levels.

These effectively create interesting profit opportunities for both the bulls and the bears and they could be realized in 2-3 weeks. The pair also trades below both the 100-day and 200-day moving averages, which suggests that the bullish bias is fully supported.

In summary, the EUR/USD currency pair appears to enjoy a strong technical bullish bias. However, with the Brexit turmoil yet to settle and the US set to release key economic data in coming days, the fundamentals appear to favor the bears.