On Wednesday, the EUR/USD currency pair pulled back from the session highs of about 1.1451 to trade at about 1.1392. The currency pair trades within a descending channel formation on the 60-minute chart.
The pair continues to trade a few levels below the 100-hour moving average line after the pullback. As a result, the currency pair plummeted 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, the preliminary German Composite PMI for September improved to 53.8, up from the previous month’s equivalent of 51.8. On the other hand, the preliminary HCOB Manufacturing PMI for the period fell to 53.8, down from 54.3, missing the forecast reading of 54.5, while the preliminary HCOB Services PMI for the period rose to 52.9, up from 49.7, beating the expectation of 50.
Elsewhere, the preliminary EU HCOB Composite PMI for September outperformed the expectation of 51.5, with a reading of 53.1, up from the preceding month’s equivalent of 52. The preliminary HCOB Services PMI for the period also came in stronger than expected, at 53 versus a forecast of 57, up from the previous month’s equivalent of 51.6, while the preliminary HCOB Manufacturing PMI remained unchanged from August at 52.7, in line with expectations.
In the US, the preliminary S&P Global Composite PMI for September improved to 58.4, up from the previous month’s 56. The preliminary S&P Global Manufacturing PMI for the period also rose to 57, up from 53.9, beating the forecast reading of 53.5. On the other hand, the preliminary S&P Global Services PMI outperformed expectations of 56, with a reading of 58.7, up from 56.5.
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 falling into oversold conditions.
Therefore, the bears will look to extend the current pullback towards 1.1335 or lower, to 1.1290. On the other hand, the bulls will look to pounce on rebounds at about 1.1451 or higher, at 1.1496.
EUR/USD Technical Analysis (the Daily Chart)
In the daily chart, the EUR/USD currency pair trades within a sideways channel formation. However, the 14-day RSI has recently pulled back to move closer to oversold conditions.
Therefore, the bears will look to stretch the current pullback towards 1.1227 or lower, to 1.1056. On the other hand, the bulls will look to pounce on rebounds at about 1.1556 or higher, at 1.1718.