The EUR/USD currency pair on Friday rallied to retest the trendline resistance at 1.0597 before pulling back to find support at 1.0543. The currency pair seems to be trading within a sideways channel formation in the 60-min chart.

The pair appears to have found solid support at the 100-hour moving average line following Friday’s late pullback. It has since retreated to trade centrally in the 14-hour RSI after avoiding slipping into overbought conditions.

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 German industrial production for March missed the (MoM) expectation of -1% with a change of -3.9%. The (YoY) equivalent returned a change of -3.5% compared to a change of -3.1% in the previous period. Earlier in the week, the seasonally adjusted German factory orders for March missed the expected change of -1.1% with a change of -4.7% (MoM), while the (YoY) equivalent fell 3.1% compared to a growth of 4.3% in the preceding period. 

In the US, the non-farm payrolls for April beat the expected job count of 391k jobs with a tally of 428k jobs. However, the unemployment rate remained unchanged from the previous month at 3.6% missing the forecast rate of 3.5%, while the average hourly wage grew by 0.3% 9MoM) compared to an estimated growth rate of 0.4%. The (YoY) e[quivalent matched the expected growth rate of 5.5%.

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

Technically, the EUR/USD currency pair seems to be trading within a sideways channel formation in the 60-min chart. This indicates a lack of clear directional bias in the market sentiment.

Therefore, the bulls will be targeting potential channel breakout profits at about 1.0597, or higher at 1.0625. On the other hand, the bears could target short-term profits at about 1.0482, or lower at 1.0424.

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 extend the current declines toward 1.0324 or lower to 1.0085. On the other hand, the bulls will be targeting long-term profits at about 1.0755, or higher at 1.1015.