On Wednesday, the EUR/USD currency pair pulled back from the session highs of about 1.1609 to trade at about 1.1585. The currency pair trades within a descending channel formation on the 60-minute chart. 

The pair continues to trade slightly below the 100-hour moving average line after the pullback. Wednesday’s pullback prevented the currency pair from rallying into the overbought 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. In the US, the ADP employment change for August fell to 38k, down from 46k in July and missing the forecast of 47k. On the other hand, factory orders for July outperformed the (MoM) forecast of 0.6%, with a change of 0.9%. 

The ISM Manufacturing PMI for August fell to 54.6, down from 55.6, missing the forecast of 55.2. The ISM Manufacturing Prices Paid for the month also fell short of 72, with a reading of 71.1, unchanged from July. On the other hand, JOLTS Job Openings for July increased to 7.271 million, up from 7.182 million, missing the forecasted tally of 7.3 million. 

In the EU, German retail sales for July missed the (MoM) forecast of 0.4%, with a change of -3.4%. On the other hand, the HCOb Manufacturing PMI for August rose to 54.3, up from 54.1, beating the forecast of 54.1. The EU unemployment rate for July increased slightly to 6.4%, up from 6.3% in June, missing the forecasted rate of 6.3%. 

Elsewhere, the preliminary EU harmonized index of consumer prices for August matched the (YoY) expectation of 3.3%. The preliminary core harmonized index of consumer prices for the period fell short of 2.5%, with a change of 2.4% (YoY).

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

Technically, the EUR/USD currency pair trades within a descending channel formation on the 60-minute chart. However, the 14-hour RSI has recently bounced back to avoid falling into oversold conditions.

Therefore, the bulls will look to extend the latest rebound towards 1.1609 or higher to 1.1636. On the other hand, the bears will look to pounce on profits at about 1.1559, or lower at 1.1529.

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 avoid rallying into overbought conditions.

Therefore, the bears will look to extend the current pullback towards 1.1503 or lower to 1.1430. On the other hand, the bulls will look to pounce on profits at about 1.1656, or higher at 1.1723.