On Thursday, the EUR/USD currency pair pulled back from the session highs of about 1.1459 to trade at about 1.1415. The currency pair trades within a descending channel formation in the 60-minute chart.

The currency pair continues to trade several levels below the 100-hour moving average line. However, the pair still has room left to run before reaching 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 Thursday, Germany’s unemployment change for June fell to 2k, down from 11k in May, beating the forecast of 15k. The unemployment rate for the month also came in better than expected at 6.3% versus a forecast of 6.4%, unchanged from the previous period.

The preliminary German consumer price index for July outperformed the (MoM) and (YoY) expectations of 0.2% and 1.9%, respectively, with 0.3% and 2%. The preliminary harmonized index of consumer prices for the period missed the (YoY) expectation of 1.9% with 1.8%, while the (MoM) equivalent matched the estimate of 0.4%.

In the U.S., the personal income for June beat the expectation of 0.2% with a change of 0.3%. The personal spending for the period fell short of 0.4% with a change of 0.3%. On the other hand, the Chicago purchasing managers’ index for July improved to 47.1, up from 40.4, beating the forecast of 42. The initial jobless claims for the week ending July 25 increased slightly to 218k, up from 217k, beating the forecasted claim count of 224k.

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. However, the 14-hour RSI still has room left to run before reaching oversold conditions.

Therefore, the bears will look to extend the current decline towards 1.1368 or lower to 1.1322. On the other hand, the bulls will look to pounce on rebounds at about 1.1459 or higher at 1.1501.

EUR/USD Technical Analysis (the Daily Chart)

In the daily chart, the EUR/USD currency pair has recently completed a double-top reversal pattern formation. The 14-day RSI has also plummeted to move closer to oversold conditions.

Therefore, the bears will look to extend the current pullback towards 1.1239 or lower to 1.1066. On the other hand, the bulls will look to pounce on rebounds at about 1.1585 or higher at 1.1759.