On Tuesday, the EUR/USD currency pair bounced back from the session lows of about 1.1172 to trade at about 1.1193. The currency pair trades within a descending channel formation on the 60-minute chart.
The pair continues to trade a few levels above the 100-hour moving average line after the rebound. However, the currency pair still has some room left to run before reaching the overbought levels of the 14-hour RSI.
EUR/USD Fundamentals Overview
From a fundamental perspective, the EUR/USD currency pair trades during a relatively busy period in both markets. On Tuesday, the US JOLTS job openings for September rose to 7.523 million, up from the previous month’s equivalent of 7.19 million, beating the forecast of 7.13 million. US factory orders for September also beat the expected (MoM) change of 1.2%, with a change of 1.8%.
On Monday, the US ISM Manufacturing PMI for October outperformed the expectation of 54.6, with a reading of 55.5, up from the preceding month’s equivalent of 54.5. On the other hand, the ISM Manufacturing Prices Paid for the period fell to 75.2, down from 77.9, missing the forecast reading of 77.
In the EU, Germany’s retail sales for September missed the expected (MoM) change of 0.4%, with a change of -2%, versus 1.2% in August. The (YoY) equivalent delivered a change of -2.3% versus the previous month’s -0.3%. On the other hand, the country’s HCOB Manufacturing PMI for October remained unchanged at 54.2%, in line with expectations.
EUR/USD Technical Analysis (the 60-min Chart)
Technically, the EUR/USD currency pair trades within a descending channel formation on the 60-minute chart. However, the 14-hour RSI has recently bounced back to avoid falling into oversold conditions.
Therefore, the bulls will look to stretch the current gains toward 1.1212 or higher, up to 1.1233. On the other hand, the bears will look to pounce on profits at about 1.1172 or lower, down to 1.1149.
EUR/USD Technical Analysis (the Daily Chart)
In the daily chart, the EUR/USD currency pair also trades within a descending channel formation. However, the 14-day RSI has recently bounced back to recover from oversold conditions.
Therefore, the bulls will look to extend the current rebound towards 1.1320 or higher, up to 1.1444. On the other hand, the bears will look to pounce on extended declines at about 1.1059 or lower, down to 1.0921.
