On Wednesday, the EUR/USD currency pair pulled back from the session highs of about 1.1170 to trade at about 1.1090. The currency pair trades within a descending channel formation on the 60-minute chart. 

The pair has now plummeted to trade several levels below the 100-hour moving average line. As a result, the currency pair has since fallen into 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, Germany’s consumer price index for October matched both the (MoM) and (YoY) expectations of -0.2% and 2.8%, respectively, unchanged from September. The harmonized index of consumer prices for the period also remained steady at -0.1% (MoM) and 2.8% (YoY). 

Earlier in the week, the country’s seasonally adjusted trade balance for September fell short of the forecast of 15.6 billion euros, at 19.2 billion euros, down from 17.8 billion euros the previous month. Elsewhere, exports for September beat the expectation of 0.5%, at 2% (MoM), while imports outshone 0.5%, at 4.2%.

In the US, the consumer price index for October came in hotter than expected at 0.4% (MoM) versus a forecast of 0.3%, down from 0.6% in September. The consumer price index for the period remained steady at 0.3%, above the forecast rate of 0.2%. The NFIB business index for October fell slightly to 97.8, down from the previous month’s equivalent of 97.9, above the forecast reading of 97.7. Redbook index came in at 10.1% versus a forecast of 9.3%, down from 10.4%. 

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

Technically, the EUR/USD currency pair trades within a descending channel formation on the 60-minute chart. The 14-hour RSI also supports a bearish bias after plummeting into oversold conditions.

Therefore, the bears will look to stretch the current pullback towards 1.1053 or lower, down to 1.1013. On the other hand, the bulls will look to pounce on rebounds at about 1.1131 or higher, up to 1.1170.

EUR/USD Technical Analysis (the Daily Chart)

In the daily chart, the EUR/USD currency pair trades within a descending channel formation. The 14-day RSI has also recently pulled back to move closer to oversold conditions.

Therefore, the bears will look to extend the current pullback towards 1.0999 to lower, down to 1.0904. On the other hand, the bulls will look to pounce on rebounds at about 1.1184 or higher, up to 1.1274.