The EUR/USD currency pair on Friday bounced off the trendline support at 0.9728 to trade at about 0.9798 after the EU data. The currency pair continues to trade within an ascending channel formation in the 60-min chart.

The pair still remains above the 100-hour moving average line despite Friday’s pullback. As a result, the currency pair still has room left to run before reaching the oversold conditions 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 both markets. On Friday, the preliminary EU harmonised index of consumer prices for September outperformed the (YoY) expectation of 9.7% with a change of 10%. On the other hand, the (MoM) equivalent was in line with the forecast of 1.2%. Elsewhere, the preliminary EU HICP ex-food, energy, alcohol and tobacco beat the expected (YoY) estimate of 4.7% with a change of 4.8%. The (MoM) equivalent was again in line with the market expectation of 1%.

In the US, the core personal consumption expenditures price index for August beat the expected (MoM) change of 0.5% with a change of 0.6%. The (YoY) equivalent also outshone the forecast of 4.7% with a change of 4.9%.  On the other hand, the general personal consumption expenditures price index for the period missed the (YoY) forecast of 6.6% with a change of 6.2%, while the (MoM) equivalent was in line with the consensus estimate of 0.3%.

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

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

Therefore, the bulls will be targeting short-term profits at about 0.9882 or higher at 0.9980. On the other hand, the bears will be targeting potential pullback profits at about 0.9728 or lower at 0.9629.

EUR/USD Technical Analysis (the Daily Chart)

In the daily chart, the EUR/USD currency pair seems to be trading within a descending channel formation. This indicates a significant long-term bearish bias in the market sentiment.

Therefore, the bears will be looking to pounce on extended declines at about 0.9541 or lower at 0.9297. On the other hand, the bulls will be targeting long-term profits at about 1.0075 or higher at 1.0365.