The EUR/USD currency pair continued to edge higher on Wednesday to add to the current weekly gains. The pair traded above 1.1330 early on before pulling back below 1.1300 in the afternoon hours.
The currency pair has been on an upward trend in recent trading sessions but now appears to have hit a key resistance at around 1.1300 level with slight oscillations up and above this region.
However, with both the 100-hour and the 200-hour moving average lines well below the current level, the bulls will continue to claim control in the short-term while the bears will target every pullback that comes along.
EUR/USD Fundamentals Overview
From a fundamental perspective, the pair is currently trading at the back of US Consumer Price Index data, which delivered relatively tepid inflation numbers. The MoM US CPI came in at 0.1% compared to 0.3% previous but was in line with estimates.
The YoY numbers were worse missing estimates of 1.9% with 1.8% and significantly below the previous month’s figure of 2.0%.
Later in the day, the EUR/USD currency pair retracted to trade below the key level 1.1300 after ECB’s Coeure Speech failed to wow investors. The US 10-Year Yield fell further to 2.130% from 2.479% in the previous period.
EUR/USD Technical Analysis (the 60-min Chart)
Technically, the EUR/USD currency pair appears to be trading in an ascending wedge. However, given Wednesday’s pullback, the pair could easily drop out of this wedge and head downwards towards 1.1280.
As such, the bears will be targeting profits around these levels and downwards towards 1.1270 while the bulls will hope that the current bullish momentum triggers a rebound back above 1.1300/30.
EUR/USD Technical Analysis (the 240-min Chart)
In the 240-min chart, the pattern becomes clearer. The pair appears to have a bearish bias. Excluding the recent bullish breakout, the EUR/USD currency pair has been trading on a relatively descending wedge.
The recent bullish run came in the aftermath of Trump’s latest tweets which suggested that the US will be imposing trade tariffs on Mexico.
However, things have cooled down since then and now the greenback looks to strike back against rival currencies o recoup losses incurred in the last two weeks.
In the long-term, 1.1260 will be a good target for the bears while the bulls will hope the current momentum carries the pair towards 1.1360.
In summary, the EUR/USD currency pair appears to enjoy a short-term bullish bias but the bears have control long-term.