On Wednesday, the EUR/USD currency pair pulled back from the session highs of about 1.1588 to trade at about 1.1522 after the latest data. The currency pair also completed a downward breakout from a descending channel formation in the 60-minute chart.

The pair has now plummeted to trade a few levels below the 100-hour moving average line. As a result, the currency pair has since entered 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 EU’s seasonally adjusted current account balance for September came in better than expected, with EUR 23.1 billion versus a forecast of EUR 14.5 billion, up from EUR 11.9 billion.

The EU’s harmonised index of consumer prices for October matched the (MoM) and (YoY) forecasts of 0.2% and 2.1%, respectively, unchanged from September. The core harmonised index of consumer prices for the period was also in line with the estimate of 2.4% (YoY), also matching the figure for September.

In the U.S., the goods and services trade balance for August outperformed the expectation of $-61 billion with a balance of $-59.6 billion, down from $-78.2 billion. The MBA mortgage applications fell by 5.2% compared to a growth of 0.6% in the previous update.

Looking forward, traders will be waiting for one of the biggest major updates from the U.S. market since September, with the initial nonfarm payrolls data for September coming out on Thursday. Traders will also be waiting for the initial jobless claims data for the last week and the Philadelphia Fed Manufacturing Survey results for November.

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

Technically, the EUR/USD currency pair has completed a downward breakout from a descending channel formation in the 60-minute chart. The 14-hour RSI also supports a bearish bias after entering oversold conditions.

Therefore, the bears will look to extend the declines toward 1.1457 or lower to 1.1388. On the other hand, the bulls will look to pounce on rebounds at about 1.1588 or higher at 1.1653.

EUR/USD Technical Analysis (the Daily Chart)

In the daily chart, the EUR/USD currency pair also trades within a descending channel formation. However, the 14-day RSI still has room left to run before reaching oversold conditions.

Therefore, the bears will look to ride the current downward movement towards 1.1360 or lower to 1.1222. On the other hand, the bulls will look to pounce on rebounds at about 1.1681 or higher at 1.1823.