On Tuesday, the EUR/USD currency pair bounced back from the session lows of about 1.1204 to trade at about 1.1259. The currency pair trades within an ascending channel formation on the 60-minute chart.

The pair has now advanced to trade slightly above the 100-hour moving average line. However, the currency pair pulled back slightly to avoid entering 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 4-week average ADP employment change improved to 23.75k, up from the previous update of 22.5k. On Monday, the ISM Services PMI for September missed the expectation of 55, with a reading of 54.9, down from 55.4 in July. 

On the other hand, the S&P Global Composite PMI for the month was unchanged at 58.4, in line with forecasts. Traders will be waiting for the US initial jobless claims data for last week on Thursday, ahead of the preliminary Michigan Consumer Sentiment Index data for October on Friday.

In the EU, the seasonally adjusted German factory orders for August missed the expected (MoM) change of -1%, with a change of -10.6%. On the other hand, the EU retail sales for August fell short of the forecast (MoM) and (YoY) changes of 0.2% and 1%, respectively, with changes of 0.1% and 0.8%. 

On Monday, the EU producer price index for August matched the forecast (MoM) change of 1.9%. Looking forward, traders will be waiting for the German industrial production data for August on Wednesday, ahead of the country’s trade balance for the month on Thursday.

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

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

Therefore, the bears will look to stretch the current pullback towards 1.1230 or lower, to 1.1204. On the other hand, the bulls will look to pounce on profits at about 1.1268 or higher, at 1.1315.

EUR/USD Technical Analysis (the Daily Chart)

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

Therefore, the bulls will look to extend the current rebound towards 1.1354 or higher, to 1.1458. On the other hand, the bears will look to pounce on profits at about 1.1157 or lower, at 1.1058.