On Thursday, the EUR/USD currency pair pulled back from the session highs of about 1.1415 to trade at about 1.1365. The currency pair trades within a sideways channel formation in the 60-minute chart.

The pair continues to trade slightly above the 100-hour moving average line. However, the earlier pullback prevented the currency pair from entering the overbought 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 Thursday, U.S. building permits for March exceeded the (MoM) forecast of 1.45 million with a tally of 1.482 million, up from the previous month’s equivalent of 1.459 million. On the other hand, housing starts for the period fell to 1.324 million, down from 1.494 million in February, missing the forecast of 1.42 million.

On the other hand, the Philadelphia Fed manufacturing Survey for April missed the expectation of 2, with -26.4, down from the preceding month’s equivalent of 12.5. Elsewhere, the initial jobless claims for the week ending April 11 fellto 215k, down from 224k, beating the forecasted claim count of 225k.

In the EU, the European Central Bank cut the base interest rate by 25 basis points to 2.4%, down from 2.65%, in line with expectations. The bank also reduced the the rate on despoit facility by 25 basis points to 2.25%, down from 2.5%, matching market expectations. On the other hand, Germany’s producer price index for March missed the expected (MoM) and (YoY) forecasts of -0.1% and 0.4%, respectively with -0.7% and -0.2%.

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

Technically, the EUR/USD currency pair trades within a sideways channel formation in the 60-minute chart. The 14-hour RSI has recently pulled back to avoid entering overbought conditions.

Therefore, the bears will target extended pullbacks at about 1.1308 or lower at 1.1247. On the other hand, the bulls will look to pounce on rebounds at about 1.1415 or higher at 1.1473.

EUR/USD Technical Analysis (the Daily Chart)

In the daily chart, the EUR/USD currency pair has completed an upward breakout from an ascending channel formation. The 14-day RSI also supports a bullish bias after reaching overbought conditions.

Therefore, the bulls will look to ride the current run of gains toward 1.1633 or higher to 1.1900. On the other hand, the bears will look to pounce on pullbacks at about 1.1075 or lower at 1.0803.