On Wednesday, the EUR/USD currency pair bounced back from the session lows of about 1.1114 to trade at about 1.1157. The currency pair trades within 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. Wednesday’s rebound helped the currency pair recover from the oversold levels of the 14-hour RSI.
EUR/USD Fundamenetals Overview
From a fundamental perspective, the EUR/USD trades during a relatively busy period in both markets. On Tuesday, the German consumer price index for September matched the (MoM) and (YoY) forecasts of 0.6% and 3.3%, respectively. The harmonized index of consumer prices for the period was also in line with the estimates of 0.6% (MoM) and 3.3% (YoY).
On Wednesday, Germany’s wholesale price index for September outperformed the (MoM) forecast of 0.7%, with a change of 1.9%. Looking forward, traders will be waiting for the EU’s industrial production data for August on Thursday, ahead of the EU’s harmonized index of consumer prices for September on Friday.
In the US, the consumer price index for September came in higher than expected on a (YoY) basis, at 3.7% versus a forecast of 3.6%, up from the previous month’s equivalent of 3.4%. The (MoM) equivalent edged higher to 0.6%, up from 0.4% in August, as expected.
On the other hand, the consumer price index ex-food and energy outperformed the forecast (MoM) change of 0.2%, with a change of 0.3%, unchanged from August. The (YoY) equivalent rose to 2.6%, up from 2.4%, beating the forecast change of 2.5%. Traders will be waiting for the consumer price index data for September on Thursday.
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 recover from oversold conditions.
Therefore, the bulls will look to stretch the current rebound towards 1.1200 or higher, up to 1.1242. On the other hand, the bears will look to pounce on profits at about 1.1114 or lower, down to 1.1067.
EUR/USD Technical Analysis (the Daily Chart)
In the daily chart, the EUR/USD currency pair has recently completed a downward breakout from a sideways channel formation. However, the 14-day RSI has recently bounced back in an attempt to recover from oversold conditions.
Therefore, the bulls will look to extend the current rebound towards 1.1402 or higher, up to 1.1641. On the other hand, the bears will look to pounce on profits at about 1.0896 or lower, down to 1.0646.
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