The EUR/USD currency pair experienced a rebound on Tuesday as it bounced off the trendline support level of around 1.0969 and climbed to approximately 1.1000 after the latest data release. Looking at the 60-minute chart, the currency pair seems to be trading within a gently descending channel formation.
Tuesday’s rebound brought the currency pair closer to the 100-hour moving average line, indicating that it may be reaching the overbought levels of the 14-hour RSI.
In terms of fundamentals, both markets have been relatively active. German retail sales for April failed to meet the expected (MoM) change of 0.4%, instead posting a change of -2.4%, and the (YoY) equivalent came short of -6.1% with a change of -8.6%. Meanwhile, the preliminary EU harmonised index of consumer prices for April exceeded the expected (YoY) change of 6.9% with a change of 7%, although the (MoM) equivalent fell short of the forecast of 0.9% with a change of 0.7%. The preliminary EU core harmonised index for consumer prices missed both the (MoM) and (YoY) estimates of 1.1% and 5.7%, respectively, with a change of 1% and 5.6%.
In the US, the ISM Manufacturing PMI for April outperformed expectations with a reading of 47.1, beating the estimated reading of 46.6. The ISM Manufacturing Employment Index, New Orders Index, and Prices Paid also surpassed the forecasts of 47.9, 45.5, and 50.4, respectively, with readings of 50.2, 45.7, and 53.2. However, the S&P Global Manufacturing PMI for the period failed to match the expectation of 50.4, recording a reading of 50.2. Factory orders for March exceeded the predicted (MoM) change of 0.8% with a change of 0.9%.
In the 60-minute chart, the EUR/USD currency pair appears to be trading within a gently descending channel formation, indicating a slight short-term bearish sentiment. Consequently, the bears will target extended declines at about 1.0969 or lower at 1.0942, while the bulls will aim to capitalize on rebounds at around 1.1035 or higher at 1.1051.
On the daily chart, the EUR/USD currency pair seems to be trading within an ascending channel formation, indicating a significant long-term bullish sentiment. Therefore, the bulls will be looking to ride the current rally towards 1.1099 or higher at 1.1190, while the bears will aim to take profits in the long term at about 1.0911 or lower at 1.0824.