On Tuesday, the EUR/USD currency pair pulled back from the session highs of about 1.1448 to trade at about 1.1428. The currency pair trades within an ascending channel formation on the 60-minute chart.

Tuesday’s pullback pushed the currency pair closer to the 100-hour moving average line. However, the pair still has some 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 Monday, the US ISM Services PMI for June fell to 54, down from 54.5, in line with expectations. The ISM Services Prices Paid for the period also fell to 67.7, down from the previous month’s equivalent of 71.3, while the ISM Services Employment Index improved to 51.2, up from 47.9. 

Elsewhere, the ISM Services New Orders Index for the month fell to 55.1, down from 57.3 in May. The US S&P Global Composite PMI for June missed the expectation of 52.2, with a reading of 51.9, down from the previous month’s equivalent of 52.2.

In the EU, the producer price index for May outperformed the (YoY) expectation of 5.7%, with a change of 5.9%. The (MoM) equivalent matched the forecasted change of 0.2%. On the other hand, the EU retail sales for May missed the expected (MoM) change of 0.3%, with a change of 0.2%. The (YoY) equivalent matched the forecasted change 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 1.1406 or lower to 1.1382. On the other hand, the bulls will look to pounce on rebounds at about 1.1448 or higher at 1.1470.

EUR/USD Technical Analysis (the Daily Chart)

In the daily chart, the EUR/USD currency pair trades within a descending channel formation. However, the 14-day RSI has recently bounced back to avoid falling deep into oversold conditions.

Therefore, the bulls will look to stretch the current rebound towards 1.1533 or higher to 1.1643. On the other hand, the bears will look to pounce on profits at about 1.1324 or lower at 1.1209.