The EUR/USD currency pair on Friday morning bounced off the trendline support to surge towards the 1.1620 level. The currency pair continues to trade within an ascending channel formation in the 60-min chart.
The pair now remains pinned several levels above the 100-hour moving average after recovering from declines earlier in the week. As a result, the pair moved closer to the overbought conditions of the 14-hour RSI on Friday.
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 trade balance for August failed to match the expectations on both the seasonally-adjusted and non-seasonally-adjusted basis. Earlier in the week, the EU industrial productions for August beat the (YoY) expectation of 4.9% with a change of 5.1%, while the (MoM) equivalent was in line with expectations at -1.6%. Germany’s harmonized index of consumer prices matched the (YoY) and (MoM) expectations of 4.1% and 0.3%, respectively.
In the US, traders will be keeping an eye on Friday’s retail sales data at 12.30 GMT, following Thursday’s impressive claims data. The US initial jobless claims for last week beat 319k with 293k, while the continuing claims for the preceding week outshone 2.675 million with 2.593 million. However, the producer price index ex-food and energy came short of expectations, while the general CPI also missed 0.6% (MoM) and 8.7% (YoY) with 0.5% and 8.6%, respectively.
EUR/USD Technical Analysis (the 60-min Chart)
Technically, the EUR/USD currency pair appears to be trading within an ascending channel formation in the 60-min chart. As a result, the pair has rallied closer to the overbought conditions of the 14-hour RSI.
Therefore, the bears will be targeting potential pullback profits at around 1.1590 or lower at 1.1567. On the other hand, the bulls will target short-term profits at about 1.1633 or higher at 1.1657.
EUR/USD Technical Analysis (the Daily Chart)
In the daily chart, the EUR/CHF currency pair seems to be trading within a descending channel formation. However, the pair recently bounced back off the trendline support to recover from the oversold conditions of the 14-day RSI.
Therefore, the bulls will be looking to stretch the current rebound towards 1.1705 or higher to 1.1806. On the other hand, the bears will be targeting long-term profits at about 1.1522 or lower at 1.1423.