The EUR/USD currency pair on Thursday pulled back off the current 4-week highs of about 1.0933 to trade at about 1.0832. The currency pair appears to be trading within a descending channel formation in the 60-min chart.

However, the pair still remains several levels above the 100-hour moving average line. Thursday’s pullback pushed the currency pair closer to 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. On Thursday, the preliminary EU consumer confidence for March missed the expected change of -18.3 with a change of -19.2. Earlier in the week, the ZEW Survey economic expectations for March also failed to match the estimated reading of 23.2 with a reading of 10, while Germany’s equivalent missed 16.4 with 13. 

In the US, the initial jobless claims for last week outperformed the expected claim count of 201k with a tally of 191k, on the other hand, New Home Sales for February missed the forecast of 0.65 million with a reading of 0.64 million (MoM). On Wednesday, the Federal Reserve raised the base interest rate by 25 basis points to 5% in line with expectations. Analysts expect the interest rates to fall to 4.3% in the first year, and to 3.1% in the second year, before falling to about 2.5% in the long term.

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. This indicates a significant short-term bearish bias in the market sentiment.

Therefore, the bears will be targeting extended declines at about 1.0800 or lower at 1.0768. On the other hand, the bulls will look to pounce on rebounds at about 1.0865 or higher at 1.0895. 

EUR/USD Technical Analysis (the Daily Chart)

In the daily chart, the EUR/USD currency pair appears to be trading within a sharply ascending channel formation. This indicates a strong long-term bullish bias in the market sentiment.

Therefore, the bulls will be targeting long-term gains at about 1.0933 or higher at 1.1028. On the other hand, the bears will look to pounce on pullbacks at about 1.739 or lower at 1.0647.