The EUR/USD currency pair on Thursday pulled back off session highs of about 1.0726 to trade at about 1.0704. The currency pair continues to trade within an ascending channel formation in the 60-minute chart.
The pair has now pulled back to trade at the 10-hour moving average line. Thursday’s late pullback prevented the currency pair from ascending into the overbought 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 Thursday, the US annualised gross domestic product for Q1 matched the expectation of 1.4%, slightly higher than the preceding quarter’s equivalent of 1.3%. The US gross domestic price index for the quarter was also in line with the estimate of 3.1%, unchanged from the previous period.
On the other hand, the personal consumption expenditure prices for Q1 outshone the forecasted (QoQ) change of 3.3% with a change of 3.4%, while the US core personal consumption expenditures for the quarter beat the (QoQ) forecast of 3.6% with a change of 3.7%. The initial jobless claims for last week also beat 236k with a slightly lower tally of 233k.
In the EU, the economic sentiment indicator for June missed the expectation of 96.2 with a reading of 95.9, down from 96, in the preceding period, while the industrial confidence for the period missed -9.6 with -10.1, down from -9.9. Elsewhere, the EU M3 money supply for May beat the expectation of 1.5% with a reading of 1.6%, up from 1.3% in the preceding period.
EUR/USD Technical Analysis (the 60-min Chart)
Technically, the EUR/USD currency pair is trading within an ascending channel formation in the 60-minute chart. However, the 14-hour RSI has recently pulled back to avoid rallying into overbought conditions.
Therefore, the bears will be looking to extend the current pullbacks at about 1.0686 or lower at 1.0670. On the other hand, the bulls will look to ride the current rally towards 1.0719 or higher to 1.0735.
EUR/USD Technical Analysis (the Daily Chart)
In the daily chart, the EUR/USD currency pair is trading within a descending channel formation. The 14-day RSI also seems to support a long-term bearish bias as it moves closer to oversold conditions.
Therefore, the bears will be looking to ride the current run of declines toward 1.0619 or lower at 1.0529. On the other hand, the bulls will look to pounce on rebounds at about 1.0789 or higher at 1.0881.