EUR/USD Bounces Off Session Lows To Trade At About 1.1135

On Wednesday, the EUR/USD currency pair bounced from the session lows of about 1.1109 to trade at about 1.1135. The currency pair also completed an upward breakout from a descending channel formation on the 60-minute chart.

The pair continues to trade a few levels below the 100-hour moving average line despite the rebound. As a result, the currency pair still has 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. In Germany, the GfK consumer confidence survey for November fell to -30.8, down from the previous update of -30.6, beating the forecast reading of -31. 

Earlier in the week, Germany’s IFO business climate for October also came in better than expected, at 90.2 versus a forecast of 89.8, up from the previous month’s equivalent of 89.9. On the other hand, the IFO for the current expectation in October edged lower to 88.8, down from 89.5, while the IFO expectations improved to 91.6, up from 90.4. 

In the US, durable goods orders for September outperformed the expected change of 0.6%, with a change of 1.8%. On the other hand, durable goods orders ex-transportation fell short of the forecast change of 0.6%, with a change of 0.5%. The US housing price index for August came in better than expected, with a change of 0.3% versus a forecast of 0.1% (MoM). 

Traders will be waiting for the Federal Reserve’s interest rate decision later on Wednesday, with analysts expecting Chairman Kevin Warch, to announce an unchanged rate at 4%.

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

Technically, the EUR/USD currency pair has recently completed an upward breakout from a descending channel formation on the 60-minute chart. The 14-hour RSI has also bounced back to avoid re-entering oversold conditions.

Therefore, the bulls will look to extend the current rebound towards 1.1159 or higher, up to 1.1181. On the other hand, the bears will look to pounce on pullbacks at about 1.1109 or lower, down to 1.1085.

EUR/USD Technical Analysis (the Daily Chart)

In the daily chart, the EUR/USD currency pair trades within a descending channel formation. The 14-day RSI has also recently pulled back in an attempt to re-enter oversold conditions.

Therefore, the bears will look to stretch the latest pullback towards 1.1002 or lower, down to 1.0854. On the other hand, the bulls will look to pounce on rebounds at about 1.1220 or higher, up to 1.1413.