On Thursday, the EUR/USD currency pair bounced back from the session lows of about 1.1191 to trade at about 1.1218. The currency pair trades within a sideways channel formation on the 60-minute chart.

The pair continues to trade slightly below the 100-hour moving average line, despite the rebound. As a result, the currency pair still has plenty of room left to run before reaching 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. On Thursday, the US initial jobless claims for last week fell to 194k, down from the previous week’s revised figure of 200k, and below the forecast claim count of 200k. 

On Wednesday, the US building permits for September beat the forecast of 1.39 million, with a tally of 1.4 million, down from the previous update of 1.403 million. On the other hand, housing starts for the month fell to 1.221 million, down from 1.288 million, missing the forecast of 1.31 million. Elsewhere, the pending home sales change for September missed the expected (MoM) change of -0.5%, with a change of -7.3%. 

In the EU, the preliminary consumer confidence for October missed the expectation of -17, with a reading of -17.9, down from the previous month’s equivalent of -16.5. Earlier in the week, Germany’s producer price index for September outperformed the forecast (MoM) change of 0.8%, with a change of 1.9%.

The country’s ZEW survey for the current situation in October beat the expectation of -45, with a reading of -35.9. The ZEW survey economic sentiment fell short of 32, with a reading of 28.1.

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

Technically, the EUR/USD currency pair trades within a sideways 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 stretch the current rebound towards 1.1249 or higher, up to 1.1280. On the other hand, the bears will look to pounce on pullbacks at about 1.1191 or lower, down to 1.1157.

EUR/USD Technical Analysis (the Daily Chart)

In the daily chart, the EUR/USD currency pair trades within a descending channel formation. However, the 14-day RSI has recently bounced back to recover from oversold conditions.

Therefore, the bulls will look to stretch the current rebound towards 1.1312 or higher, up to 1.1427. On the other hand, the bears will look to ride the current run of declines toward 1.1120 or lower, down to 1.0999.