On Wednesday, the EUR/USD currency pair pulled back from the session highs of about 1.1626 to trade at about 1.1581. The currency pair trades within an ascending channel formation in the 60-minute chart.

The pair continues to trade a few levels above the 100-hour moving average line, despite the latest pullback. The currency pair still has 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 trades during a relatively busy period in both markets. On Wednesday, Germany’s HCOB Manufacturing PMI for March beat the forecasted reading of 51.7, with a reading of 52.2, up from 51.7. On the other hand, the unemployment rate for February missed the expectation of 6.1%, with a rate of 6.2%, up from 6.1% in January.

Earlier in the week, Germany’s retail sales for February also fell short of the forecasted (MoM) and (YoY) changes of 0.2% and 1%, respectively, with changes of -0.6% and 0.7%. On the other hand, the unemployment change for the period fell to 0k, down from 1k in the preceding month, beating the forecast of 2k, while the unemployment rate was unchanged at 6.3%, as expected.

In the US, the Chicago Purchasing Managers’ Index for March fell to 52.8, down from 57.7 in February, missing the forecasted reading of 55. The JOLTS Job Openings for February also fell to 6.882 million, down from 7.24 million in January, missing the forecast of 6.92 million.

On the other hand, the US ADP employment change for March outperformed the expectation of 40k, with a tally of 62k, down from 64k. Retail sales for February also beat the forecasted change of 0.5%, with 0.6% (MoM), while the retail sales ex-autos outshone the (MoM) forecast of 0.3%, with a change of 0.5%.

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

Technically, the EUR/USD currency pair trades within an ascending channel formation in the 60-minute chart. However, the 14-hour RSI has recently pulled back to avoid entering overbought conditions.

Therefore, the bears will look to stretch the latest pullback towards 1.1531 or lower to 1.1484. On the other hand, the bulls will look to pounce on profits at about 1.1626 or higher at 1.1667.

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 recover from overbought conditions.

Therefore, the bears will look to extend the latest pullback towards 1.1326 or lower to 1.1042. On the other hand, the bulls will look to pounce on rebounds at about 1.1824 or higher at 1.2085.