On Wednesday, the EUR/USD currency pair pulled back from the session highs of about 1.1379 to trade at about 1.1329. The currency pair trades within a descending channel formation on the 60-minute chart.
The pair continues to trade a few levels below the 100-hour moving average line after the pullback. However, the currency pair still has some 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, the US personal income for August missed the forecast (MoM) change of 0.4%, with a change of 0.2%. On the other hand, personal spending for the period outshone the forecast of 0.8%, with a change of 0.9%.
The Chicago Purchasing Managers’ Index for September also exceeded the forecast reading of 51.2, with a reading of 58.8. The annualized US gross domestic product for Q2 also outshone the forecast change of 1.5%, with a change of 2.2%. Elsewhere, the US ADP employment change for September rose to 90k, up from the previous month’s equivalent of 36k, beating the forecast change of 70k.
In the EU, German retail sales for August missed the expected (MoM) change of 2%, with a change of 1.3%. The unemployment change for August also fell short of the forecast change of 5k, with a change of 12k, up from the previous month’s equivalent of 4k. On the other hand, the unemployment rate for the month was unchanged from July at 6.4%, in line with expectations.
Elsewhere, the preliminary German consumer price index for September outperformed the expected (MoM) change of 0.5%, with a change of 0.6%. The preliminary harmonized index of consumer prices for the period also beat the (MoM) and (YoY) forecasts of 0.5% and 3.1%, respectively, with changes of 0.6% and 3.3%.
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 still has some room left to run before reaching oversold conditions.
Therefore, the bears will look to stretch the current pullback towards 1.1274 or lower, to 1.1217. On the other hand, the bulls will look to pounce on rebounds at about 1.1379 or higher, at 1.1431.
EUR/USD Technical Analysis (the Daily Chart)
In the daily chart, the EUR/USD currency pair also trades within a descending channel formation. The 14-day RSI also supports a long-term bearish bias after plunging into oversold conditions.
Therefore, the bears will look to ride the current run of declines toward 1.1167 or lower, to 1.0999. On the other hand, the bulls will look to pounce on rebounds at about 1.1471 or higher, up to 1.1626.