On Wednesday, the EUR/USD currency pair pulled back from the session highs of about 1.1372 to trade at about 1.1323. The currency pair trades within an ascending channel formation in the 60-minute chart.

The pair has now pulled back to trade at 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 Federal Reserve chose to keep the base interest rate unchanged at 4.5% in line with forecasts.

Earlier in the week, the ISM Services PMI for April outperformed the expectation of 50.6 with a reading of 51.6, up from 50.8 in March. The S&P Global Composite PMI for April fell short of the forecasted reading of 51.2 with a reading of 50.6, down from 51.2. Traders will be looking forward to the initial jobless claims data for April on Thursday.

In the EU, the EU economic area’s retail sales for March missed the expected (MoM) change of 0% with a change of -0.1%. The (YoY) equivalent also fell short of 1.6% with a change of 1.5%. Elsewhere, the seasonally adjusted German factory orders for March exceeded expectations of 1.3% with a change of 3.6% (MoM).

Earlier in the week, the EU’s producer price index for March fell short of 2% with a change of 1.9% (YoY), while the (MoM) equivalent was in line with the estimate of -1.6%.

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

Technically, the EUR/USD currency pair trades within an ascending channel formation in the 60-minute chart. However, the 14-hour RSI has recently pulled back to avoid rallying into overbought conditions.

Therefore, the bears will look to extend the current pullback towards 1.1274 or lower to 1.1224. On the other hand, the bulls will look to pounce on profits at about 1.1372 or higher at 1.1422.

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 recover from overbought conditions.

Therefore, the bears will target long-term pullbacks at about 1.1101 or lower at 1.0872. On the other hand, the bulls will look to ride the current run of gains toward 1.1564 or higher to 1.1786.