On Thursday, the EUR/USD currency pair pulled back from the session highs of about 1.0481 to trade at about 1.0422. The currency pair also completed a downward breakout from a descending channel formation.

The pair has now fallen to trade below the 100-hour moving average line in the 60-minute chart. Thursday’s pullback also 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 trades during a relatively busy period in both markets. On Wednesday, news emerged that Trump will announce 25% tariffs on EU products, further putting pressure on the Euro.

On Thursday, the EU’s economic sentiment indicator for February was stronger than expected with 96.2 versus a forecast of 96, up from 95.3. On the other hand, consumer confidence was unchanged from January at -13.6, in line with expectations. On Wednesday, Germany’s Gfk consumer confidence survey for February fell short of -21 with -24.7, down from -22.4 in January.

In the U.S., the initial jobless claims for the week ending February 21 came in significantly higher than expected with 242k versus a forecast of 221k, up from the preceding week’s equivalent of 220k.

The durable goods orders for January were better than expected, delivering a change of 3.1% versus a forecast of 2%, while the durable goods orders ex-transportation missed the forecast of 0.3% with a change of 0%. Elsewhere, the nondefence capital goods orders ex-aircraft outshone the estimate of 0.3% with a change of 0.8%.

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

Technically, the EUR/USD currency pair has completed a downward breakout from a descending channel formation. The 14-hour RSI also supports a bearish bias as it edges closer to oversold conditions.

Therefore, the bears will look to stretch the current declines toward 1.0372 or lower to 1.0318. On the other hand, the bulls will look to pounce on rebounds at about 1.0481 or higher at 1.0529.

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 stretch the current pullback towards 1.0225 or lower to 1.0027. On the other hand, the bulls will look to pounce on profits at about 1.0628 or higher at 1.0818.