On Wednesday, the EUR/USD currency pair pulled back from the session highs of about 1.1557 to trade at about 1.1536. The currency pair trades within a sideways channel formation on the 60-minute chart.
The pair continues to trade a few levels below the 100-hour moving average line after the latest pullback. However, the currency 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 Wednesday, the US retail sales for August outperformed the (MoM) forecast of 0.8%, with a change of 1.2%. The retail sales ex-autos for the period also exceeded the expectation of 0.5%, with a change of 1.4% (MoM).
On Tuesday, the NY Empire State Manufacturing Index for September missed the expectation of 14.75, with a reading of 7.6, down from the previous month’s equivalent of 20.6. Traders will be waiting for Fed Chair Warsh’s statement on the interest rate decision later on Wednesday, ahead of Thursday’s housing data and the jobless claims data.
In the EU, the seasonally adjusted industrial production for July outperformed the forecast (MoM) change of -0.2%, with a change of 0.1%. On Tuesday, the EU’s ZEW survey economic sentiment for September missed the expectation of 39.9, with a reading of 25.8, down from the previous month’s equivalent of 31.4.
On the other hand, Germany’s ZEW survey economic sentiment for the month fell short of the forecast reading of 37, with a reading of 34.7, up from the preceding month’s equivalent of 34.2, while the ZEW survey for the current situation in September outshone the forecasted reading of -52.2, with -47.1, up from -61.1.
EUR/USD Technical Analysis (the 60-min Chart)
Technically, the EUR/USD currency pair trades within a sideways channel formation on the 60-minute chart. However, the 14-hour RSI has recently pulled back to move closer to oversold conditions.
Therefore, the bears will look to stretch the latest pullback towards 1.1513 or lower, to 1.1489. On the other hand, the bulls will look to pounce on rebounds at about 1.1557 or higher, at 1.1581.
EUR/USD Technical Analysis (the Daily Chart)
In the daily chart, the EUR/USD currency pair trades within an ascending channel formation. However, the 14-day RSI has recently pulled back to avoid rallying into overbought conditions.
Therefore, the bears will look to stretch the current pullback towards 1.1456 or lower, to 1.1366. On the other hand, the bulls will look to pounce on profits at about 1.1623 or higher, at 1.1709.