On Wednesday, the EUR/USD currency pair pulled back off the session highs of about 1.1079 to trade at about 1.1042. The currency pair trades within a descending channel formation in the 60-minute chart.
The pair has now plummeted to trade a few levels below the 100-hour moving average line. As a result, the currency pair is on the verge of entering 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 US ADP Employment Change for September outperformed the expected change of 120k with a tally of 143k, up from the previous month’s equivalent of 103k.
On Tuesday, the US ISM Manufacturing PMI for September was unchanged from August with a reading of 47.2, missing the forecast of 47.5. The ISM Manufacturing Prices Paid for the period also fell short of 53.3 with 48.3, while the ISM Manufacturing Employment Index missed the estimates of 47 with a reading of 43.9. On the other hand, the JOLTS job openings for August outshone the forecast of 7.655 million with a tally of 8.04 million.
In the EU, the unemployment rate for August was unchanged at 6.4% in line with expectations. On Tuesday, the EU’s preliminary harmonised index of consumer prices for September missed the expected (YoY) change of 1.9% with a change of 1.8%, down from 2.2% in August. The preliminary core harmonised index of consumer prices for the period also fell short of 2.8% with a change of 2.7%, down from 2.8%.
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 plummeted to move closer to the oversold conditions.
Therefore, the bears will look to extend the current decline towards 1.0998 or lower to 1.0959. On the other hand, the bulls will look to pounce on rebounds at about 1.1079 or higher at 1.1117.
EUR/USD Technical Analysis (the Daily Chart)
In the daily chart, the EUR/USD currency pair trades within an ascending channel formation. However, the 14-day RSI has recently pulled back to avoid rallying into overbought conditions.
Therefore, the bears will be targeting extended pullbacks at about 1.0878 or lower at 1.0688. On the other hand, the bulls will look to pounce on rebounds at about 1.1209 or higher at 1.1389.