The EUR/USD currency pair on Wednesday pulled back off the session highs of about 1.0590 to trade at about 1.0531. The currency pair appears to be trading within a descending channel formation in the 60-min chart.
Wednesday’s pullback pushed the currency pair below the 100-hour moving average line. As a result, the pair appears to be moving 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 busty period in both markets. On Wednesday, the EU’s harmonised index of consumer prices for August matched both the (MoM) and (YoY) expectations of 0.3% and 4.3%, respectively.
The core harmonised index of consumer prices for the period was also in line with the estimate of 0.2% (MoM) and 4.5% (YoY). Earlier in the week, the EU’s ZEW survey economic sentiment for October beat -8 with 2.3. On the other hand, Germany’s ZEW survey economic sentiment outshone -9 with -1.1, while the current situation came in better than expected with -79.9 versus a forecast of -80.5.
In the US, building permits for September beat 1.45 million with 1.475 million, while housing starts missed 1.38 million with a tally of 1.358 million. Earlier in the week, the US retail sales for September beat 0.3% with a change of 0.7% (MoM), the retail sales ex-autos also outshone 0.2% with a change of 0.6%, while industrial production exceeded the estimate of 0% with a change of 0.3%.
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 hourly MACD also appears to have recently completed a downward crossover, indicating a bearish bias.
Therefore, the bears will be looking to stretch the current run of declines toward 1.0517 or lower to 1.0500. On the other hand, the bulls will be targeting potential rebounds at about 1.0549 or higher at 1.0566.
EUR/USD Technical Analysis (the Daily Chart)
In the daily chart, the EUR/USD currency pair also appears to be trading within a descending channel formation. However, the daily MACD seems to have recently completed an upward crossover amid a decaying momentum.
Therefore, the bulls will be targeting potential rebounds at about 1.0600 or higher at 1.0678. On the other hand, the bears will be targeting long-term profits at about 1.0459 or lower at 1.0383.