forex EUR-USD Technical Analysis

So we the eur-usd did not experience overbought after all and we can see it now being retrace to the middle band of daily time frame. This should be the ideal position where it should be making correction. However as i always said before we do not want to speculate things in forex where overbought/oversold may happened anytime without warning. A possible move back to the bottom band is always open wide.

However from the current movement patterns that the pair is experiencing right now, it could be moving sideways to form three big mountains and troughs. This has kind of patterns have been recorded in the past and is proven repeatedly happen.

On the fundamental side of it let's take a look how the Euro zone and US economic data has affect the market to move that way. The fundamental is the caused why the market move randomly and frequently go for overshot.

JPY	Housing Starts y/y	19.8%	54.2%
EUR	CPI Flash Estimate y/y	2.1%	3.2%
EUR	Italian Prelim CPI m/m	-0.4%	0.0%
EUR	Unemployment Rate	7.7%	7.6%
CHF	KOF Economic Barometer	-0.05	0.28
GBP	CBI Realized Sales	-46	-27
CAD	Current Account		6.8B
CAD	RMPI m/m		-7.2%
CAD	IPPI m/m		-1.2%

Do you notice actually the fundamental economic data from forexfactory website shows the overall for Eurozone is slightly poor for today. However the market make correction significantly because it follows the long-term trend movement which is still going down.

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