On Wednesday, the EUR/USD currency pair pulled off the session highs of about 1.0866 to trade at about 1.0839. The currency pair trades within a descending channel formation in the 60-minute chart.

The pair also continues to trade a few levels below the 100-hour moving average line. Wednesday’s pullback 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, the EU’s preliminary HCOB Services PMI for July missed the expectation of 53 with a reading of 51.9, the Manufacturing PMI for the period also fell short of 46.1 with a reading of 45.6, while the Composite PMI failed to match the forecast of 51.1 with a reading of 50.1.

Elsewhere, Germany’s preliminary HCOB Services PMI fell short of 53.1 with a reading of 52. The Manufacturing PMI also failed to match the expectation of 44 with 42.6, while the Composite PMI missed 50.7 with 48.7.

In the US, the preliminary S&P Global Services PMI for July outshone the forecast of 54.4 with a reading of 56, while the Manufacturing PMI for the period fell short of 51.7 with a reading of 49.5. The new home sales for June missed the expectation of 0.64 million with a tally of 0.617 million.

The preliminary wholesale inventories for June outshone the expected change of 0.5% with a change of 0.2%. The preliminary goods trade balance for the period also beat $-98 billion with a balance of $-96.8 billion.

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. The 14-hour RSI has also pulled back to move closer to the oversold levels of the indicator.

Therefore, the bears will be targeting extended pullbacks at about 1.0825 or lower at 1.0812. On the other hand, the bulls will look to pounce on rebounds at about 1.0852 or higher at 1.0866.

EUR/USD Technical Analysis (the Daily Chart)

In the daily chart, the EUR/USD currency pair has completed a downward breakout from an ascending channel formation. The 14-day RSI has also pulled back to avoid rallying into overbought conditions.

Therefore, the bears will look to extend the current pullbacks toward 1.0788 or lower to 1.0736. On the other hand, the bulls will be targeting long-term profits at about 1.0887 or higher at 1.0933.