The EUR/USD currency pair on Friday surged to trade at a new 2-week high of about 1.1824 after bouncing off the current weekly low of 1.1732. The currency pair continues to trade within an ascending channel in the 60-min chart.
The pair has rallied several levels above the 100-hour and the k200-hour SMA lines. The current pattern formation comes from a descending wedge formation, which indicates an attempt by the bulls to take control of the pair.
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 US wholesale inventories for August beat the expectation of 0.5% with 0.4%. On Thursday, the initial jobless claims missed 720k with 740k claims while continuing claims outperformed 11.4M with 10.976M. Earlier in the week, the US JOLTS job openings for August missed the expectation of 6.685M with 6.493M. The ISM services PMI for September outperformed 56.3 with 57.8 while the ISM Services new orders index beat 44.7 with 61.5.
In the EU, retails ales for August beat the (YoY) expectation of 2.2% with 3.7% earlier in the week. The (MoM) equivalent also outperformed 2.4% with 4.4%. The Markit Services PMI for September outshone 47.6 with 48 while the PMI composite came in at 50.4 beating the expected level of 50.1. The EU Sentix investor confidence for October also outperformed the expected reading -9.5 with -8.2.
EUR/USD Technical Analysis (the 60-min Chart)
Technically, the EUR/USD currency pair appears to be trading within an ascending channel in the 60-min chart. This indicates a slight short-term bullish bias in the market sentiment. The pair has now surged several levels above the 100-hour and the 200-hour SMA lines.
The bulls will be looking to extend the current gains towards 1.1868 or higher to 1.1914. On the other hand, the bears will look to pounce on short-term pullback profits at around 1.1777 or lower at 1.1732.
EUR/USD Technical Analysis (the Daily Chart)
In the daily chart, the EUR/USD currency pair appears to be trading within a descending channel. It stems off a sharply ascending channel. This indicates an attempt by the bears to take control of the pair in the long-term.
They will target long-term profits at around 23.60% and 38.20% fib levels at 1.1682 and 1.1491, respectively. On the other hand, the bulls will look to pounce for profits at around 0.00% Fib level at 1.2014 or higher at 1.2207.