The EUR/USD currency pair on Thursday pulled back off the session highs of about 1.0900 to trade at about 1.0864. The currency pair trades within a descending channel formation in the 60-minute chart.

The pair has now plummeted to trade closer to the 100-hour moving average line. As a result, the currency pair has pulled back to return to the regular trading zone 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 consumer price index for June fell to 3% (YoY) down from 3.3% in the previous month, missing the forecast of 3.1%. The (MoM) equivalent also edged slightly lower to -0.1% down from 0%, missing the forecasted change of 0.1%.

The consumer price index ex-food and energy for the period also fell short of the forecasts of 0.2% (MoM) and 3.4% (YoY) with changes of 0.1% and 3.3%, respectively, down from 0.2% and 3.4%. The initial jobless claims for the week ending July 5 decreased to 222k down from 239k in the preceding week, beating the forecasted claim count of 236k.

In the EU, Germany’s consumer price index for June came in at 0.1% (MoM) and 2.2% (YoY) in line with expectations, and the same as the previous month. The harmonised index of consumer prices for the period also matched the expected (YoY) change of 2.5%. The (MoM) equivalent was also in line with the forecast of 0.2%, both unchanged from the previous period.

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

Technically, the EUR/USD currency pair is trading within a sharply descending channel formation in the 60-minute chart. The 14-hour RSI has also pulled back to recover from overbought conditions.

Therefore, the bears will be targeting extended pullbacks at about 1.0845 or lower at 1.0823. On the other hand, the bulls will look to pounce on rebounds at about 1.0879 or higher at 1.0900.

EUR/USD Technical Analysis (the Daily Chart)

In the daily chart, the EUR/USD currency pair appears to be trading within an ascending channel formation. The 14-day RSI also seems to support a bullish bias as it edges closer to overbought conditions.

Therefore, the bulls will be looking to stretch the current rally towards 1.0934 or higher to 1.0998. On the other hand, the bears will look to pounce on pullback profits at about 1.0795 or lower at 1.0730.