The EUR/USD currency pair on Thursday rallied to trade at a new 7-week high of about 1.0926 before pulling back to about 1.0906. The currency pair appears to be trading within a sharply ascending channel formation.
As a result, the pair has rallied to trade several levels above the 100-hour moving average line. Thursday’s late pullback pushed the pair back to the normal trading zone of the 14-hour RSI.
EUR/USD Fundamentals Overview
From a fundamentals perspective, the EUR/USD currency pair is trading at the back of a relatively busy period in the US market. On Thursday, the initial jobless claims for the week ending March 24 missed the expected claim count of 196k with a slightly higher tally of 198k.
The annualised Q4 US gross domestic product missed the expectation of 2.7% with a change of 2.6%, while the QoQ equivalent was in line with the forecast of 3.9%. The core personal consumption expenditure for Q4 outshone the expected (QoQ) change of 4.3% with a change of 4.4%, while the core Personal Consumption Expenditures Prices were in line with the estimate of 3.7%.
In the EU, Germany’s preliminary harmonised index of consumer prices for March outshone the (YoY) expectation of 7.5% with a change of 7.8%. On the other hand, the EU consumer confidence for March matched the estimated reading of -19.2, while business climate edged slightly lower to 0.7 down from 0.71 in the previous update.
EUR/USD Technical Analysis (the 60-min Chart)
Technically, the EUR/USD currency pair appears to be trading within a sharply ascending channel formation in the 60-min chart. This indicates a strong short-term bullish bias in the market sentiment.
Therefore, the bulls will be looking to extend the current spike towards 1.0926 or higher to 1.0948. On the other hand, the bears will look to pounce on pullbacks at about 1.0883 or lower at 1.0861.
EUR/USD Technical Analysis (the Daily Chart)
In the daily chart, the EUR/USD currency pair appears to be trading within an ascending channel formation. This indicates a significant long-term bullish bias in the market sentiment.
Therefore, the bulls will be targeting long-term profits at about 1.0986 or higher at 1.1065. On the other hand, the bears will look to pounce on profits at about 1.0819 or lower at 1.0732.