EURUSD Recovers from Session Lows Amid Key Economic Data
The EUR/USD currency pair recovered from session lows on Tuesday, climbing from 1.1204 to trade at approximately 1.1259. The pair is currently moving within an ascending channel pattern on the 60-minute chart, slightly above the 100-hour moving average. However, it has pulled back to avoid overbought levels on the 14-hour RSI.
From a fundamental perspective, the EUR/USD pair is trading during a period of significant economic data releases. In the US, the 4-week average ADP employment change improved to 23.75k from the previous 22.5k. Meanwhile, the ISM Services PMI for September missed expectations, coming in at 54.9 compared to the forecast of 55. The S&P Global Composite PMI for September remained unchanged at 58.4. Traders are now awaiting the US initial jobless claims data for last week and the preliminary Michigan Consumer Sentiment Index for October.
In the EU, German factory orders for August fell short of expectations, showing a decline of 10.6% month-over-month instead of the forecasted 1%. EU retail sales for August also underperformed, with a 0.1% month-over-month change and a 0.8% year-over-year change. The EU producer price index for August matched forecasts with a 1.9% month-over-month change. Upcoming data includes German industrial production for August and the country’s trade balance for the month.
Technically, the EUR/USD pair is trading within an ascending channel on the 60-minute chart, with the 14-hour RSI pulling back to avoid overbought conditions. Bears are eyeing a pullback to 1.1230 or lower, while bulls aim for gains up to 1.1268 or higher. On the daily chart, the pair is within a sharply descending channel, with the 14-day RSI attempting to recover from oversold conditions. Bulls are targeting a rebound to 1.1354 or higher, while bears are looking to push the pair lower to 1.1157 or below.