The EUR/USD currency pair on Friday pulled back off the current monthly highs of about 1.0108 to trade at about 1.0039. The currency pair continues to trade within an ascending channel formation in the 60-min chart. 

The pair has since advanced to trade several levels above the 100-hour moving average line. However, Friday’s pullback pushed the currency pair back to the normal trading zone 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 Thursday, the European Central Bank raised the base interest rate to 1.25% up from 0.5%. The institution also increased the base deposit rate from 0% to 0.75%. Earlier in the week, the Q2 gross domestic product grew by 0.8% (QoQ), beating the forecasted growth rate of 0.6%. The (YoY) equivalent also outperformed the expectation of 3.9% with a growth rate of 4.1%. Retail sales for August missed the (YoY) estimate of 0.9% with a change of 0.7%.

In the US, the ISM Services PMI for August outperformed the expectation of 55.1 with 56.9. The ISM Services Employment Index and New Orders Index also outshone the expectations of 48.2 and 57 with 50.2 and 61.8, respectively. On the other hand, the ISM Services Prices Paid missed the forecast of 76.5 with 71.5. The S&P Global Composite PMI and the Global Services PMI also came in below expectations. On Thursday, the US initial jobless claims for last week beat the expectation of 240k with a claim count of 222k.

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

Technically, the EUR/USD currency pair appears to be trading within an ascending channel formation in the 60-min chart. This indicates a significant short-term bullish bias in the market sentiment.

Therefore, the bulls will be targeting extended gains at about 1.0073, or higher at 1.0108. On the other hand, the bears will be targeting short-term profits at about 1.0006, or lower at 0.9957.

EUR/USD Technical Analysis (the Daily Chart)

In the daily chart, the EUR/USD currency pair seems to be trading within a descending channel formation. This indicates a significant long-term bearish bias in the market sentiment.

Therefore, the bears will be looking to extend the current declines toward 0.9886 or lower to 0.9734. On the other hand, the bulls will be targeting long-term profits at about 1.0189 or higher at 1.0364.