The EUR/USD currency pair plunged on Wednesday to hit a new 7-week low of about 1.1127 following a series of economic data from France, Germany and the EU that failed to impress the market.

The pair managed to find support around this level momentarily rebounding to trade at around 1.1150 before pulling back again moments before the US Preliminary PMI data.

The currency pair continues to trade within a downward trending channel, which indicates a short-term bearish bias.

EUR/USD Fundamentals Overview

From a fundamental perspective, the EUR/USD currency pair is trading at the back of several EU economic events and data. France and Germany saw some key economic data released to the market today, which disappointed traders.

France, Markit PMI data (Manufacturing, Services, and Composite) all missed expectations with 50.0, 52.2 and 51.7 points respectively while business climate sentiment also missed the expectation of 102 points with 101 points.

Germany’s Markit Services PMI (Preliminary) beat with 55.4 but missed expectation on Composite and Manufacturing with 51.4 and 43.1 respectively for the month of July.

On the other hand, the EU economic Block missed expectations for June on both Composite and Manufacturing with 51.5 and 46.4 respectively while Services was inline with 53.3 expectations for June.

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

From a technical viewpoint, the EUR/USD currency pair appears to be trading within a downward trending channel, which implies a bearish pressure. 

The bulls will target short-term profits at 1.1158 while the bears will target more pullback around 1.1127. The Relative Strength Index indicator shows that the pair has recently hit oversold levels, which gives the bulls more optimism.

EUR/USD Technical Analysis (the Daily Chart)

In the daily chart, the pair also appears to be under significant bearish pressure as it continues to trade within a descending channel. 

Both the 100-day and the 200-day Moving average lines are above the current level of the EUR/USD pair, which suggests more downward pressure can be expected. The RSI shows that the current trend can continue for the foreseeable future since it is yet to hit oversold levels in the daily chart.

In summary, the EUR/USD currency pair appears to be experiencing a bearish bias both in the short-term and the long-term. However, the bulls will target any rebounds that come along.