EUR/USD Finds Trendline Resistance at the 100-Hour MA

The EUR/USD currency pair on Friday bounced off the trendline support at 1.0240, before finding resistance at the 100-hour MA. The currency pair continues to trade within a descending channel formation in the 60-min chart.

Friday’s rebound helped the currency pair to recover from the oversold conditions of the 14-hour RSI. However, with the 100-hour MA providing strong resistance, a pullback seems imminent.

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 EU industrial production for June beat the (MoM) expectation of 0.2% with 0.7%. The (YoY) equivalent also outperformed 0.8% with 2.4%. In Germany, the harmonised index of consumer prices for July matched the (YoY) expectation of 8.5%. The (MoM) equivalent also came in line with the forecast of 0.8%.

In the US, the preliminary Michigan Consumer Sentiment Index for August outperformed the expectation of 52.5 with 55.1. Import and export indexes for July missed the (MoM) expectations of -1% and -1.1%, respectively with -1.4% and -3.3%. Earlier in the week, the initial jobless claims for last week beat the expected claim count of 263k with a lower tally of 262k. On the other hand, the continuing claims for the preceding week missed the expectation of 1.407 million with a higher claim count of 1.428 million.

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 bulls will be looking to extend Friday’s rebound towards 1.0313 or higher to 1.0359. On the other hand, the bears will look to pounce for profits at about 1.0213 or lower at 1.0168.

EUR/USD Technical Analysis (the Daily Chart)

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

Therefore, the bears will be targeting long-term profits at about 0.10003, or lower at 0.9707. On the other hand, the bulls will look to pounce on profits at about 1.0537, or higher at 1.0776.

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