On Wednesday, the EUR/USD currency pair pulled back from the session highs of about 1.0461 to trade at about 1.0420. The currency pair trades within a descending channel formation in the 60-minute chart.

The pair has now fallen to trade a few levels below the 100-hour moving average line. However, the currency pair made a late rebound during the session to avoid falling into the oversold 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 U.S. building permits for January exceeded the (MoM) expectation of 1.46 million with a tally of 1.483 million, up from the preceding month’s equivalent of 1.482 million.

On the other hand, the housing starts for the month fell short of the forecasted tally of 1.4 million with 1.366 million down from 1.515 million in December. Earlier in the week, the U.S. NY Empire State Manufacturing Index for February improved to 5.7, up from -12.6 in January, beating the forecast of -1.

In the EU, Germany’s ZEW survey for the current situation in February improved to -88.5 up from -90.4 in January, beating the forecast of -90. The country’s ZEW survey economic sentiment for the period also improved to 26, up from 10.3, beating the expectation of 15.5. On the other hand, the EU’s ZEW survey economic sentiment for the month fell short of 24.3 with a reading of 24.2, down from 18.

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

Technically, the EUR/USD currency pair trades within a descending channel formation in the 60-minute chart. However, the 14-hour RSI has recently bounced back to avoid falling into the oversold conditions.

Therefore, the bulls will look to extend the current rebounds toward 1.0461 or higher to 1.0510. On the other hand, the bears will look to ride the current run of declines toward 1.0367 or lower to 1.0318.

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 1.0204 or lower to 0.9976. On the other hand, the bulls will look to pounce on profits at about 1.0623 or higher at 1.0825.