On Wednesday, the EUR/USD currency pair pulled back from the session highs of about 1.1552 to trade at about 1.1452. The currency pair trades within a descending channel formation in the 60-minute chart.

The pair has now fallen to trade a few levels below the 100-hour moving average line. As a result, the currency pair is on the verge of crossing into the oversold levels of the 14-hour RSI.

EUR/USD Fundamentals Overview

From a fundamental perspective, the EUR/USD currency pair trades during a relatively busy period in both markets. On Wednesday, the EU’s harmonized index of consumer prices for February missed the expected (MoM) change of 0.7%, with a change of 0.6%. The (YoY) equivalent matched the forecast of 1.9%. The core harmonized index of consumer prices for the period was also in line with the estimate of 2.4% (YoY).

Earlier in the week, the EU’s ZEW survey for economic sentiment for March missed the expectation of 24, with a reading of -8.5. Germany’s equivalent for the period also fell short of 38.7, with a reading of -0.5, while the German ZEW survey for the current situation in March beat -67.1, with a reading of -62.9.

In the US, the producer price index for February outperformed the (MoM) forecast of 0.3%, with 0.7%. The (YoY) equivalent also outshone the forecast of 2.9%, with 3.4%. The producer price index ex-food and energy for the period came in stronger than expected, with (MoM) and (YoY) changes of 0.5% and 3.9%, respectively, versus forecasts of 0.3% and 3.7%.

On the other hand, Factory orders for January matched the forecast of 0.1% (MoM). The Federal Reserve also chose to keep the base interest rate unchanged at 3.75%, as expected.

EUR/USD Technical Analysis (the 60-min Chart)

Technically, the EUR/USD currency pair trades within a descending channel formation in the 60-minute chart. The 14-hour RSI also supports a bearish bias as it edges closer to oversold conditions.

Therefore, the bears will look to stretch the latest pullback towards 1.1354 or lower to 1.1251. On the other hand, the bulls will look to pounce on rebounds at about 1.1552 or higher at 1.1644.

EUR/USD Technical Analysis (the Daily Chart)

In the daily chart, the EUR/USD currency pair trades within an ascending channel formation. However, the 14-day RSI has recently pulled back to move closer to oversold conditions.

Therefore, the bears will look to stretch the latest decline towards 1.1126 or lower to 1.0818. On the other hand, the bulls will look to pounce on profits at about 1.1780 or higher at 1.2078.