The EUR/USD currency pair on Thursday pulled back off the session highs of about 1.0748 to trade at about 1.0721. The currency pair has completed a downward breakout from an ascending channel formation.

Thursday’s pullback pushed the currency pair closer to the oversold levels of the 14-hour RSI. The pair has now plummeted to trade slightly below the 100-hour moving average line.

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. On Thursday, Germany’s producer price index for May missed the expected (MoM) change of 0.3% with a change of 0%. The (YoY) equivalent also fell short of the forecasted change of -2% with a change of -2.2%.

Earlier in the week, the EU’s harmonised index of consumer prices for May matched both the (MoM) and (YoY) forecasts of 0.2% and 2.6%, unchanged from the previous month. The core harmonised index of consumer prices for the period was also in line with the (YoY) forecast of 2.9%, the same as the preceding period.

In the US, building permits for May missed the expectation of 1.45 million with a tally of 1.386 million. Housing starts for the period also fell short of 1.37 million with 1.277 million.

On the other hand, the initial jobless claims for the week ending June 14 missed the expected claim count of 235k with a slightly higher tally of 238k, while the continuing claims also fell short of 1.81 million with a tally of 1.828 million. Elsewhere, the Philadelphia Fed Manufacturing Survey for June failed to match the forecast of 5 with a reading of 1.3.

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

Technically, the EUR/USD currency pair has recently pulled back to a complete downward breakout from an ascending channel formation. The 14-hour RSI also seems to support a bearish bias as it edges closer to oversold conditions.

Therefore, the bears will be looking to extend the current pullbacks toward 1.0692 or lower to 1.0668. On the other hand, the bulls will look to pounce on rebounds at about 1.0748 or higher to 1.0771.

EUR/USD Technical Analysis (the Daily Chart)

In the daily chart, the EUR/USD currency pair is trading within a descending channel formation. The 14-day RSI also seems to support a long-term bearish bias as it moves towards oversold conditions.

Therefore, the bears will look to extend the current run of declines toward 1.0619 or lower to 1.0515. On the other hand, the bulls will look to pounce on profits at about 1.0809 or higher at 1.0908.