The EUR/USD currency pair on Wednesday pulled back off the current session highs of about 1.0747 to trade at about 1.0703. The currency pair continues to trade in a sideways channel formation in the 60-min chart.

The pair remains several levels below the 100-hour moving average line. The currency pair appears to have made a late rebound, which prevented it from falling into 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 Wednesday, the EU retail sales for July outperformed the expected (YoY) change of -1.2% with a change of -1%. The (MoM) equivalent matched the expectation of -0.2%. Elsewhere, the seasonally adjusted German factory orders for July missed the expected (MoM) change of -4% with a change of -11.7%. 

In the US, the ISM Services PMI for August beat the expected reading of 52.5 with a reading of 54.5. The S&P Global Services PMI for the period fell short of the forecasted reading of 51 with a reading of 50.5. On the other hand, the Composite PMI missed the estimate of 50.4 with a reading of 50.2.

The IBD/TIPP Economic Optimism for September outshone the estimated reading of 41.1 with a reading of 43.2, while the goods and services trade balance for July outshone the forecasted balance of $-65.8 billion with a balance of $-65 billion, down from $-63.7 billion in the previous update.

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

Technically, the EUR/USD currency pair appears to be trading within a sideways channel formation in the 60-min chart. However, the hourly MAC appears to be about to begin a downward crossover indicating a bearish sentiment.

Therefore, the bears will be targeting short-term profits at about 1.0703 or lower at 1.0676. On the other hand, the bulls will look to pounce on rebounds at about 1.0747 or higher at 1.0771.

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. The daily MACD also appears to support a bearish bias after completing a downward crossover.

Therefore, the bears will be looking to extend the current run of declines toward 1.0627 or lower to 1.0534. On the other hand, the bulls will look to pounce on potential reversals at about 1.0818 or higher at 1.0919.