The EUR/USD currency pair on Friday pulled back off the current weekly highs of about 1.2150 before bouncing back, later on, to trade at around 1.2119. The currency pair is now pinned just above the 23.60% fib level in the 60-min chart.

It bounced back on Friday to trade above the 100-hour and the 200-hour SMA lines. The pair also appears to have made a rebound to avoid crossing to oversold 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 the US market. On Friday, the preliminary Michigan Consumer Sentiment Index for February missed the expectation of 80.8 with 76.2. On Thursday, the initial jobless claims for the week ending February 5, missed the expected claim count of 757k with a tally of 793k. The continuing claims for the preceding week also missed the cumulative count of 4.49M with a tally of 4.545M claims.

Earlier in the week, the US consumer price index ex-food and energy for January missed the expected (MoM) change of 0.2% with a change of 0.0%. The (YoY) equivalent also came short of 1.5% with a change of 1.4%. The general CPI for January came short of the (YoY) expectation of 1.5% with 1.4% while the (MoM) equivalent was in line with expectations at 0.3%. The US JOLTS job openings for December outperformed the expected job count of 6.5 million with a tally of 6.646 million.

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

Technically, the EUR/USD currency pair appears to have recently pulled back following a significant rally during the week. The pair is now trading just above the 23.60% fib level after bouncing back late on Friday. 

The bulls will be looking to extend Friday’s late rebound towards 1.2133 or higher to the 0.00% fib level at 1.2150. On the other hand, the bears will target pullback profits at around the 23.60% fib level at 1.2100 or lower at 1.2083.

EUR/USD Technical Analysis (the Daily Chart)

In the daily chart, the EUR/USD currency pair still appears to be trading within an ascending wedge formation. This indicates a significant long-term bullish bias in the market sentiment. The pair has recently bounced off the trendline support after completing an ascending XABCD pattern formation.

The bulls will target long-term profits at around 1.2205 or higher at 1.2310. On the other hand, the bears will look to pounce for potential pullbacks at around 1.2005 or lower at 1.1890.