The EUR/USD currency pair on Wednesday pulled back off the session highs of about 1.0961 to trade at about 1.0909. The currency pair appears to be trading within a descending channel formation in the 60-minute chart.
The pair has now fallen to trade several levels below the 100-hour moving average line. As a result. The currency pair has plummeted to trade 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 German unemployment change for December outperformed the expected change of 20k with a significantly lower chance of 5k. The unemployment rate for the month remained unchanged from November at 5.9% in line with expectations.
On Tuesday, the German HCOB Manufacturing PMI for December beat 43.1 with a reading of 43.3. The EU’s HCOB Manufacturing PMI also outshone 44.2 with 44.4, while the M3 Money Supply beat the (YoY) expectation of 1% with a change of 0.9%.
In the US, the ISM Manufacturing PMI for December beat the expectation of 47.1 with a reading of 47.4. The ISM Manufacturing Employment Index for the period also beat 46.1 with a reading of 48.1, while the ISM Manufacturing Prices Paid missed the estimate of 47.5 with a reading of 45.2. Elsewhere, the JOLTS job openings for November also fell short of 8.85 million with a tally of 8.79 million.
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-minute chart. The pair has now fallen to trade closer to the oversold levels of the 14-hour RSI.
Therefore, the bears will be looking to extend the current declines toward 1.0886 or lower to 1.0853. On the other hand, the bulls will look to pounce on rebounds at about 1.0930 or higher at 1.0961.
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. However, the pair has recently pulled back to avoid rallying into the overbought levels of the 14-day RSI.
Therefore, the bears will be targeting extended pullbacks at about 1.0785 or lower at 1.0669. On the other hand, the bulls will be looking to ride the current run of gains toward 1.1031 or higher to 1.1143.