The EUR/USD currency pair on Wednesday pulled back off the session highs of about 1.0975 to trade at about 1.0942. The currency pair appears to be trading within a descending channel formation in the 60-min chart.

The pair has now fallen to trade at the 100-hour moving average line. However, Wednesday’s late recovery prevented the currency pair from descending 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 German producer price index for November missed the (MoM) expectation of -0.3% with a change of -0.5%. The (YoY) equivalent also fell short of the forecasted change of -7.5% with a change of -7.9%.

On the other hand, the Gfk consumer confidence survey for January outshone the estimate of -27 with a reading of -25.1, while the EU’s preliminary consumer confidence for December beat -16.4 with a reading of -15.1.

In the US, existing home sales for November beat the expectation of 3.77 million with a tally of 3.82 million. The existing home sales change for the period improved to 0.8% compared to -4.1% in the previous update.

Earlier in the week, housing starts for November also beat 1.36 million with 1.56 million, while housing starts change delivered a change of 14.8% up from 0.2% in the preceding period. On the other hand, building permits missed 1.47 million with 1.46 million, with change for the period coming at -2.5% versus 1.8%, previously.

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 14-hour RSI also seems to support a bearish bias as it moves closer to the oversold region.

Therefore, the bears will be looking to extend the current declines toward 1.0925 or lower to 1.0907. On the other hand, the bulls will be targeting short-term profits at about 1.0958 or higher at 1.0975.

EUR/USD Technical Analysis (the Daily Chart)

In the daily chart, the EUR/USD currency pair appears to be trading within an ascending channel formation. The 14-day RSI also seems to support a long-term bullish bias as it moves closer to the overbought region.

Therefore, the bulls will be looking to ride the current run of gains toward 1.1014 or higher to 1.1088. On the other hand, the bears will look to pounce on profits at about 1.0868 or lower at 1.0792.