The EUR/USD currency pair on Wednesday plunged to trade at a new weekly low of about 1.1128 following the release of the latest German data. The currency pair has been trading within a descending wedge over the last few days but continues to enjoy strong support around 1.1130 level.

The pair is now trading just off the boundary to the oversold levels of the RSI indicator in the 60-min chart and this could trigger the next rebound.

EUR/USD Fundamentals Overview 

From a fundamental perspective, the EUR/USD currency pair is trading at the back of a relatively busy period compared to the previous week. The EU data released on Monday and Tuesday was impressive. It either beat or met consensus estimates. 

However, on Wednesday, German Factory Orders for November missed expectations on both (YoY) and (MoM) basis with -6.5% and -1.3% versus -1.5% and 0.3%, respectively. The French Trade Balance also disappointed while Consumer Confidence for December came short of 104 with a reading of 102.

On the other hand, on Monday, the US Markit Services PMI and the PMI Composite for December beat estimates of 52.2 each with readings of 52.8 and 52.7, respectively. And on Tuesday, the ISM non-Manufacturing PMI outperformed the expectation of 54.5 with 55 while Factory Orders for November also beat the (MoM) consensus estimate of 0.7% with a change of 0.8%.

On Wednesday, the US MBA Mortgage Applications for the week ending December 27 increased by 13.5% compared to a decline of 5.3% in the previous period. 

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

Technically, the EUR/USD currency pair appears to have recently touched the boundary to the oversold levels of the RSI indicator, which shows a short-term bearish bias in the market sentiment. The currency pair is currently pegged below both the 100-hour and the 200-hour SMA lines, which further support the case of increased bearish pressure.

Therefore, the bears will be targeting short-term profits at around 1.1100 or lower at 1.1085 while the bulls will hope for an immediate rebound towards 50% and 38.20% Fib levels at 1.1150 and 1.1173, respectively.

EUR/USD Technical Analysis (the Daily Chart)

In the daily chart, the EUR/USD currency pair appears to have recently pulled back off the descending trendline support after the bulls attempted to seize long-term control from the bears. This did not materialize and now, the bears appear set to retain control.

Therefore, the bulls will be hoping to trigger an immediate rebound towards 1.1240 or higher at 1.1350 while the bears will target long-term profits at around 1.1061 or lower at 1.0975 going into the tail-end of the week.