EUR/USD Plunges to New 4-Week Lows After US Data

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The EUR/USD currency pair on Friday plunged to trade at a 4-week low of about 1.1613 before making a slight rebound late on to 1.1630. The currency pair has been trading in a sharply descending triangle since the start of the week amid increased bearish pressure.

The late rebound prevented the currency pair from crossing to oversold levels of the 14-hour RSI in the 60-min chart. The pair remains several levels below the 100-hour and the 200-hour SMA lines.

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 durable goods orders for August missed the expectation of 1.5% with a change of 0.4%. On the other hand, nondefense capital goods ex-aircraft outperformed the expectation of 0.5% with a change of 1.8%. Durable goods orders ex-transportation missed the expectation of 1.2% with 0.4% while durable goods orders ex-defense beat 0.1%with 0.7%.

In the EU, the preliminary manufacturing PMI for September beat the expectation of 51.9 with 53.7. The EU Markit PMI Composite missed 51.7 with 50.1 while the Services PMI came short of 50.5 with 47.6. Earlier in the week, the preliminary Consumer Confidence Index for September beat the expectation of 14.6 with 13.9.

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

Technically, the EUR/USD currency pair appears to be trading within a sharply diving triangle formation in the 60-min chart. This indicates a significant short-term bearish pressure in the market sentiment.

The bulls will target short-term rebound profits at around 1.1665 or higher at 1.1705. On the other hand, the bears will look to extend the current declines at around 1.1600 or lower at 1.1550.

EUR/USD Technical Analysis (the Daily Chart)

In the daily chart, the EUR/USD currency pair appears to have made a bearish breakout off a sharply ascending channel. This indicates an attempt by the bears to seize control of the pair from the bulls.

The bears will target long-term profits at around 1.1747 or higher at 1.1878. On the other hand, the bears will look to pounce for profits at around 38.20% and 50% Fib levels at 1.1490 and 1.1329, respectively.

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