The EUR/USD currency pair attempted a rebound on Monday morning to recoup some of the losses incurred late last week. The currency pair has spent most of the time just under the 1.1300 level since the start of the month trading in a tight range. However, it broke out from this range on Friday after US Jobs Report beat expectations.

The currency pair is still under intense bearish pressure as it continues to trade within a downward trending channel that extends back to June 25 this year. And with the US data beating expectations last week, this bearish run could continue to the foreseeable future.

EUR/USD Fundamentals Overview

The US economy appears to be more upbeat now after last week’s non-farm payrolls. This is down to the 224,000 jobs the economy added to the market in June, which was better than the expected figure of about 160,000. 

In fact, there were fears that the jobs numbers could come in as low as 120,000 after the dismal performance in May that saw the US labor market create just 75,000 jobs.

From the Euro’s perspective, Monday presented mixed economic data from both the EU economic block and Germany. The Eurozone Sentix INvestor Index missed expectations of 0.1 with -0.5. On the other hand, Germany’s Exports MoM beat expectations of 0.0% growth with 1.1% growth while the Industrial Production Index missed with -3.7% versus -1.1% on a YoY basis.

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

From a technical perspective, the EUR/USD currency pair appears to be trading within a bearish channel, which indicates that the bears retain control in the short-term. And after the recent rebound, the [air now appears to have returned to trade within the normal range after previously falling to oversold levels.

This presents some interesting trading opportunities for both the bulls and the bears. The bulls will hope that the rebound carries on towards the 1.1238 level while the bears will look to pounce by targeting profits around the 1.1196 level.

EUR/USD Technical Analysis (the Daily Chart)

In the daily chart, the bearish bias is again confirmed using the XABCD pattern with the final wave likely to run its full course by mid this month. Relative Strength Index Indicator also shows that the pair is trading within the normal range which supports a continuation of the current trend.

The bears will target long-term profits around 1.1100 level while the bulls will hope for an immediate rebound towards the 1.1250 level.

In summary, with the US economic data putting the greenback in a position of strength coupled with mixed EU data, the EUR/USD currency pair looks destined for a continued bearish movement over the next few days.