The EUR/USD currency pair rebounded on Friday to trade above 1.1330 after spending most of the week below 1.1250.

The pair’s recent rebound brings to an end a 2-week period of a downward movement in the process creating a new descending channel with s key resistance trendline just above the current 100-hour and 200-hour moving average lines.

The EUR/USD currency pair now appears set for another pullback after hitting the critical resistance zone.

EUR/USD Fundamentals Overview

From a fundamental perspective, the EUR/USD currency pair’s latest advance can be attributed to a combination of factors.

First, the Federal Reserve indicated this week in the latest comment that there could be a rate cut this year due to a challenging economic condition that appears to be pointing towards a global recession.

Second, on Friday, EU PMI’s came in better than expected to trigger the continuation of yesterday’s gains. Furthermore, trade tensions between the US and China continue to increase with China reportedly ready to devalue that Yuan should the US impose tariffs on Chinese products.

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

From a technical viewpoint, the EUR/USD currency pair appears to have recently made a channel breakout. The formation of the new channel above the old one suggests a short-term burst in optimism but the general outlook carries a bearish bias.

This creates some interesting opportunities for both the bulls and the bears. The bulls will target profits at around 1.1326 while the bears will look to pounce by placing trades with a target at 1.1283 in the short-term

EUR/USD Technical Analysis (the Daily Chart)

In the daily chart, the picture appears clearer with the bearish bias well illustrated. The pair continues to trade within a bearish channel. It is also currently placed between the 100-day and the 200-day moving average lines, which suggests a continuation of the current pattern could be on the cards.

As such, the bulls will have limited opportunities to target up top with the most feasible one coming in around 1.1412 for long-term trading. On the other hand, the bears will have intermediate trading opportunities at 1.1206, while a long-term target at 1.1113 also looks realistic.

In summary, the bulls may enjoy the short-term win for now, but when you look at things with a long-term view, the bears retain control in both the intermediate and long-term markets.