The EUR/USD currency pair on Wednesday pulled back off the session highs of about 1.0995 to trade at about 1.0977. The currency pair appears to be trading within a descending channel formation in the 60-min chart. 

The pair has now fallen to trade slightly below the 100-hour moving average line. However, the pair remains at several levels before reaching the oversold levels of the 14-hour RSI.

EUR/USD Fundamentals Overview

From a fundamental perspective, the EUR/USD currency pair is trading at the back of a relatively busy period in both markets. Germany’s harmonised index of consumer prices for July matched both the (MoM) and (YoY) expectations of 0.5% and 6.5%, respectively. General CPI for the period was also in line with the forecasted rates of 0.3% (MoM) and 6.2% (YoY). Earlier in the week, the seasonally-adjusted industrial production for June missed the expected change of -0.4% with a change of -1.5%, while the EU’s Sentix Investor Confidence for August beat the expectation of -23.4 with a reading of -18.9.

In the US, the NFIB business optimism index for July outperformed the expected reading of 90.6 with a reading of 91.9. On the other hand, the Goods and Services Trade Balance for June missed the expected balance of $-65 billion with a balance of $-65.5 billion. The IBD/TIPP Economic Optimism for August also fell short of 43 with a reading of 40.3 (MoM), while wholesale inventories for June beat the expected change of -0.3% with a change of -0.5%.

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

Technically, the EUR/USD currency pair appears to be trading within a descending channel formation in the 60-min chart. The MACD also shows a decayed bullish momentum with a downward crossover imminent.

Therefore, the bears will be targeting extended pullbacks at about 1.0968 or lower at 1.0956. On the other hand, the bulls will be targeting potential rebounds at about 1.0987 or higher at 1.0998.

EUR/USD Technical Analysis (the Daily Chart)

In the daily chart, the EUR/USD currency pair appears to be trading within a descending channel formation. However, the MACD indicates a decaying bearing momentum with an upward crossover probably just days away.

Therefore, the bulls will be targeting potential reversal profits at about 1.1035 or higher at 1.1096. On the other hand, the bears will look to pounce on extended declines at about 1.0918 or lower at 1.0851.