The EUR/USD currency pair on Friday pulled back off 26-month highs to trade at around 1.1841 following the latest round of GDP data from both markets. The currency pair continues to trade within a sharply rising channel amid increased bullish pressure.

The pair is firmly placed several levels above the 100-hour and the 200-hour SMA lines in the 60-min chart. Today’s pullback pushed it back to the normal trading zone off the overbought levels of the 14-hour RSI.

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 personal consumption expenditure-price index for June beat the (YoY) expectation of 0.5% with 0.8%. The (MoM) equivalent missed 0.0% with 0.5%. 

The core personal expenditure-price index was in line with the (MoM) expectation while personal income missed -0.5% with -1.1%. Personal spending also beat 5.5% with 5.6% while the employment cost index for Q2 missed 0.6% with 0.5%. Annualized GDP for Q2 beat -34.1% with -32.9% but missed on a (QoQ) basis with -2.1% versus 1.1%.

In Europe, the seasonally adjusted Gross Domestic Product for Q2 missed the (QoQ) expectation of -12% with -12.1%. It also came short of the (YoY) expectation of -14.5% with -15%. The preliminary core consumer price index for July beat the (YoY) expectation of 0.8% with 1.2% while the general (YoY) CPI outperformed 0.2% with 0.4%. 

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

Technically, the EUR/USD currency pair appears to be trading within a sharply rising channel in the 60-min chart. This indicates a short-term bullish bias in the market sentiment. The latest pullback pushed the pair off overbought levels of the 14-hour RSI back to the normal trading zone.

The bulls will be looking to retain short-term control of the pair by targeting profits at around 1.1862 or higher at 1.1887. On the other hand, the bears will look to extend the current pullback towards 1.1810 or lower to 1.1781.

EUR/USD Technical Analysis (the Daily Chart)

In the daily chart, the EUR/USD currency pair appears to be trading within a sharply rising curve. This indicates a strong long-term bullish bias in the market sentiment. The pair has already ventured into overbought levels of the 14-day RSI.

The bulls will look to extend the current gains towards 1.1905 or higher to 1.2000. On the other hand, the bears will target long-term pullback profits at around 1.1737 or lower at 1.1601.