The EUR/USD currency pair on Friday extended gains to a new 4-month high of about 1.0320 following the latest round of CPI data. The currency pair appears to be trading within an ascending channel formation in the 60-min chart.

The currency pair has now rallied to trade several levels above the 100-hour moving average line. As a result, the pair is now trading in the overbought conditions 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 market sentiment. On Friday, Germany’s harmonised index of consumer prices for October matched the expected (YoY) change of 11.6%. The (MoM) equivalent also met the forecast of 1.1%. On the other hand, the general CPI for the period was in line with the (MoM) and (YoY) expectations of 0.9% and 10.4%, respectively. Earlier in the week, the EDU retail sales for September outperformed the (YoY) estimate of -1.3% with a change of -0.6%.

In the US, the preliminary Michigan consumer sentiment index for November missed the expected reading of 59.5 with a reading of 54.7. On Thursday, the US consumer price index ex-food and energy missed the (MoM) and (YoY) expectations of 0.5% and 6.5%, respectively with a change of 0.3% and 6.3%. On the other hand, the initial jobless claims of 225k for the week ending November 4, also came short of the forecast of 220k.

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

Technically, the EUR/USD currency pair seems 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 looking to extend the current gains toward 1.0362 or higher to 1.0410. On the other hand, the bears will be targeting potential pullbacks at about 1.0272 or lower at 1.0224.

EUR/USD Technical Analysis (the Daily Chart)

In the daily chart, the EUR/USD currency pair seems to be about to complete an upward breakout from an ascending channel formation. This indicates a significant increase in the long-term bullish bias.

Therefore, the bulls will be targeting long-term profits at about 1.0560 or higher at 1.0765. On the other hand, the bears will be looking to pounce on profits at about 1.0115 or lower at 0.9896.