On Wednesday, the EUR/USD currency pair pulled back from the session highs of about 1.1574 to trade at about 1.1540. The currency pair trades within an ascending channel formation in the 60-minute chart.
Wednesday’s pullback pushed the pair a few levels below the 100-hour moving average line. However, the currency 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. In the EU, Germany’s trade balance for April missed the expectation of EUR 15 billion, with EUR 14.5 billion, down from the previous month’s equivalent of EUR 14.7 billion. On the other hand, the seasonally-adjusted industrial production for April matched the forecasted (MoM) change of 0.4%.
Elsewhere, the seasonally adjusted factory orders for the month fell short of the forecasted (MoM) change of -1.2%, with a change of -3.8%. Looking forward, traders will be waiting for the ECB’s interest rate and deposit rate decisions on Thursday, ahead of the German harmonized index of consumer prices data for May on Friday.
In the US, the consumer price index for May matched the forecasted (MoM) and (YoY) rates of 0.5% and 4.2%, respectively. On the other hand, the consumer price index ex-food and energy for the period fell short of the forecasted (MoM) change of 0.3%, with a change of 0.2%, while the (YoY) equivalent matched the estimate of 2.9%. The monthly budget statement for May fell to $-293 billion, down from $215 billion, missing the forecast of $-275 billion.
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-day RSI has recently pulled back to avoid moving closer to overbought conditions.
Therefore, the bears will look to stretch the latest pullback towards 1.1573 or lower to 1.1507. On the other hand, the bulls will look to pounce on rebounds at about 1.1557 or higher at 1.1574.
EUR/USD Technical Analysis (the Daily Chart)
In the daily chart, the EUR/USD currency pair trades within a descending channel formation. The 14-day RSI also supports a bearish bias as it edges closer to oversold conditions.
Therefore, the bears will look to stretch the current run of declines toward 1.1416 or lower to 1.1292. On the other hand, the bulls will look to pounce on rebounds at about 1.1671 or higher at 1.1788.