The EUR/USD currency pair on Wednesday pulled back off the session highs of about 1.0567 to trade at about 1.0534. The currency pair continues to trade within a descending channel formation in the 60-min chart.
The pair has now fallen to trade a few levels below the 100-hour moving average line. As a result, the currency 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 busy period in both markets. On Wednesday, the US ISM Manufacturing PMI for October missed the expectation of 49 with a reading of 46.7. The ISM Manufacturing Employment Index for the period also fell short of 50.3 with 46.8, while the Manufacturing Prices Paid beat 44.5 with a reading of 45.1.
The ADP Employment Change of October rose to 113k up from 89k in September missing the forecast of 150k. The JOLTS job opening for September beat 9.25 million with 9.553 million. The Fed also voted to keep the base interest rate unchanged at 5.5%.
In the EU, the preliminary gross domestic product for Q3 missed the expected (QoQ) change of 0% with a change of -0.1%. The (YoY) equivalent also fell short of 0.2% with a change of 0.1%. The preliminary harmonised index of consumer prices for October fell short of the forecasted change of 3.1% with a change of 2.9% (YoY). The core harmonised index for the period was in line with the estimate of 4.2%.
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 seems to have recently completed a downward crossover, indicating a bearish bias.
Therefore, the bears will be looking to extend the current declines toward 1.0500 or lower to 1.0470. On the other hand, the bulls will look to pounce on rebounds at about 1.0567 or higher at 1.0602.
EUR/USD Technical Analysis (the Daily Chart)
In the daily chart, the EUR/CHF currency pair appears to be trading within an ascending channel formation. The daily MACD also seems to have recently completed an upward crossover amid a lack of strong momentum.
Therefore, the bulls will be targeting long-term profits at about 1.0667 or higher at 1.0778. On the other hand, the bears will look to pounce on profits at about 1.0420 or lower at 1.0290.