On Tuesday, the EUR/USD currency pair pulled back from the session highs of about 1.1761 to trade at about 1.1731 after the latest data. The currency pair trades within an ascending channel formation in the 60-minute chart.
The pair continues to trade slightly above the 100-hour moving average line, despite the latest pullback. Tuesday’s pullback prevented the currency pair from advancing into the overbought levels of the 14-hour RSI.
EUR/USD Fundamentals Overview
From a fundamental perspective, the EUR/USD currency pair trades during a relatively busy period in both markets. On Tuesday, the German retail sales for August missed the expected (MoM) change of 0.6% with a change of -0.2%. The unemployment change for the month missed the forecast of 7k, with a change of 14k, up from the preceding month’s equivalent of -9k.
On the other hand, the unemployment rate was unchanged at 6.3%, in line with expectations. The preliminary consumer price index for September beat the forecasted (MoM) and (YoY) changes of 0.1% and 2.3%, respectively, with changes of 0.2% and 2.4%. The preliminary harmonised index of consumer prices for the period also outperformed the forecasts of 0.1% (MoM) and 2.2% (YoY), with changes of 0.2% and 2.4%, respectively.
In the U.S., the housing price index for July missed the expected (MoM) change of 0.1% with a change of -0.1%. The Chicago Purchasing Managers Index for September also fell short of 43, with a reading of 40.6, while JOLTS job openings for August beat the expectation of 7.2 million with a tally of 7.227 million.
EUR/USD Technical Analysis (the 60-min Chart)
Technically, the EUR/USD currency pair trades within an ascending channel formation in the 60-minute chart. However, the 14-hour RSI has recently pulled back to avoid rallying into overbought conditions.
Therefore, the bears will look to stretch the current pullback towards 1.1693 or lower to 1.1656. On the other hand, the bulls will look to pounce on rebounds at about 1.1761 or higher at 1.1797.
EUR/USD Technical Analysis (the Daily Chart)
In the daily chart, the EUR/USD currency pair trades within an ascending channel formation. However, the 14-day RSI still has room left to run before reaching overbought conditions after a recent pullback.
Therefore, the bulls will look to ride the current rally towards 1.1913 or higher to 1.2110. On the other hand, the bears will look to pounce on extended pullbacks at about 1.1551 or lower at 1.1369.