The EUR/USD currency pair on Thursday pulled back off session highs of about 1.0888 to trade at about 1.0819. The currency pair continues to trade within an ascending channel formation in the 60-minute chart.
Thursday’s pullback pushed the currency pair closer to the 100-hour moving average line. However, the pair still seems to have room left to run before reaching the oversold levels of the 14-hour RSI.
EUR/USD Fundamentals Overview
From a fundamental perspective, the EUR/USD currency pair is trading at the back of a relatively busy period in both markets. On Thursday, Germany’s preliminary HCOB Manufacturing PMI for February missed the expectation of 46.1 with a reading of 42.3. On the other hand, the Services PMI exceeded the forecast of 48 with 48.2, while the PMI Composite missed 47.5 with a reading of 46.1.
The EU’s preliminary HCOB Manufacturing PMI for the period missed the expectation of 47 with a reading of 46.1, while the Services PMI beat 48.8 with 50. On the other hand, the Composite PMI outshone the estimate of 48.5 with a reading of 48.9.
In the US, the preliminary S&P Global Manufacturing PMI for February exceeded the expectation of 50.5 with a reading of 51.5. On the other hand, the Services PMI for the period missed 52 with 51.3.
Elsewhere, the initial jobless claims for the week ending February 16, beat the expected claim count of 218k with a significantly lower tally of 201k. The continuing claims for the week ending February 9, also outshone the estimate of 1.885 million with a tally of 1.862 million.
EUR/USD Technical Analysis (the 60-min Chart)
Technically, the EUR/USD currency pair appears to be trading within an ascending channel formation in the 60-minute chart. However, the 14-hour RSI has recently pulled back to recover from overbought conditions.
Therefore, the bears will be targeting extended pullbacks at about 1.0795 or lower at 1.0768. On the other hand, the bulls will be targeting potential rebounds at about 1.0845 or higher at 1.0870.
EUR/USD Technical Analysis (the Daily Chart)
In the daily chart, the EUR/USD currency pair appears to have recently completed an upward breakout from a descending channel formation. The 14-day RSI also seems to support a long-term bullish bias after rejecting entry into oversold conditions.
Therefore, the bulls will be targeting extended rebounds at about 1.0932 or higher at 1.1028. On the other hand, the bears will look to pounce on profits at about 1.0699 or lower at 1.0595.