On Wednesday, the EUR/USD currency pair extended sideways movement after finding strong support at about 1.0903. The currency pair trades within a slightly ascending channel formation in the 60-minute chart.

The pair continues to trade a few levels above the 100-hour moving average line. As a result, the currency pair still has 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 Wednesday, the seasonally adjusted German industrial production for June outshone the forecasted (MoM) change of 1% with a change of 1.4%, up from -2.5%. The (YoY) equivalent also improved to -4.1%, up from -6.7% in the preceding period.

Elsewhere, German exports for June missed the (MoM) expectation of -1.5% with a change of -3.4%. Imports for the period also fell short of 2.8% with a change of 0.3%. Earlier in the week, EU retail sales for June missed the (MoM) and (YoY) expectations of -0.1% and 0.1%, with changes of -0.3% and -0.3%.

In the US, the ISM Services PMI for July exceeded expectations of 51 with a reading of 51.4. The ISM Services Employment Index for the period also beat 46.5 with 51.1, while the ISM Services Prices Paid outshone the forecast of 55.8 with a reading of 57. Elsewhere, the S&P Global Composite PMI for July missed the expectation of 55 with a reading of 54.3, while the Services PMI fell short of 56 with 55.

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

Technically, the GBP/USD currency pair trades within a sideways channel formation in the 600-minute chart. The 14-hour RSI also seems to have room left on either side, suggesting an indifference in the market.

Therefore, the bears will be targeting potential pullbacks at about 1.0903 or lower at 1.0884. On the other hand, the bulls will look to swoop in for rebounds at about 1.0945 or higher at 1.0964.

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 the overbought conditions.

Therefore, the bears will look to extend the current pullback towards 1.0843 or lower to 1.0773. On the other hand, the bulls will look to extend the current rally towards 1.1007 or higher to 1.1075.