The EUR/USD currency pair on Friday found support at the 100-hour moving average line after pulling back from the current weekly highs. The currency pair now appears to be pinned at around 0.9725, down from 0.9811.
The pair appears to be trading within a descending channel in the 60-min chart. It has since moved closer to the oversold conditions of the 14-hour RSI. However, there is still room left for more downward movement.
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 US retail sales control group for September beat the expectation of 0.3% with a change of 0.4%. On the other hand, the general retail sales for the period missed the (MoM) forecast of 0.2% with a change of 0%. Elsewhere, the preliminary Michigan consumer sentiment index for October outshone the forecast of 59 with a reading of 59.8.
In the EU, Germany’s September wholesale price index outperformed the (MoM) and (YoY) expectations of 1.1% and 19%, respectively with 1.6% and 19.9%. Earlier in the week, the country’s September harmonised index of consumer prices matched both the (MoM) and (YoY) forecasts of 2.2% and 10.9%, respectively. The consumer price index for the period also came in line with forecasts.
EUR/USD Technical Analysis (the 60-min Chart)
Technically, the EUR/USD currency pair seems to be trading within a descending channel formation in the 60-min chart. This indicates a significant short-term bearish bias in the market sentiment.
Therefore, the bears will be looking to extend the current declines toward 0.9675 or lower to 0.9632. On the other hand, the bulls will be looking to pounce on profits at about 0.9768 or higher at 0.9811.
EUR/USD Technical Analysis (the Daily Chart)
In the daily chart, the EUR/USD currency pair appears 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 targeting long-term profits at about 0.9430 or lower at 0.9072. On the other hand, the bulls will be targeting potential rebounds at about 1.0080 or higher at 1.0451.