The EUR/USD currency pair pulled back on Wednesday to trade below the key level 1.1000 amid increased bearish pressure following Monday’s EU PMIs. The currency pair continues to trade within a consolidative bearish wedge and is now testing strong support at around 1.0980 level.

The currency pair is closing in on the oversold border and this could trigger the next rebound as supported by the trendline support and the key support zone.

EUR/USD Fundamentals Overview

From a fundamental perspective, the EUR/USD currency pair is trading at the back of disappointing EU PMIs that missed expectations on all fronts. On Monday, the preliminary EU Market Manufacturing PMI for September missed expectations of 47.3 points with 45.6 points while the PMI Composite of 50.4 was also lower than what analysts had predicted. 

The Services PMI, on the other hand, came in at 52.0 missing the expectation of 53.3. The German PMIs and the French PMIs also missed expectations on all fronts in the process adding pressure to the Euro.

On the other hand, in the US, the Preliminary Markit Manufacturing PMI beat expectations of 50.3 with 51.0 while the PMI Composite was also better than the predicted figure of 49.6 with 51.0.

The US Housing Price Index for July (MoM) bet the expected change of 0.3% with 0.4% while the 2-year note auction-rate improved to 1.612% up from 1.516%.

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

Technically, the EUR/USD currency pair continues to trade in a consolidative wedge but with strong support around 1.0980. The currency pair is trading several pips below the 100-hour and the 200-hour moving average lines in the 60-min Chart, which again supports the case for bearish pressure.

Therefore, the bears will be targeting short-term profits at around 1.0956 and lower at 1.0934. On the other hand, the bulls will be targeting rebounds at around 1.1000 and higher at 1.1023.

EUR/USD Technical Analysis (the Daily Chart)

In the daily chart, the EUR/USD currency pair appears to be still trading under considerable bearish pressure within a descending wedge that extends back to early 2018. The recent pullback has put it next to the trendline support and this could trigger a short-term rebound.

Therefore, the bulls will be targeting profits at around 1.1107, 1.1167, or higher at 1.1238. On the other hand, the bears will be looking for profits at around 1.0926, 1.0832 or lower at 1.0672.

In summary, the EUR/USD currency pair appears to be experiencing bearish pressure both in the short-term and the long-term markets. However, the bulls will be targeting profits on rebounds.