On Thursday, the EUR/USD currency pair pulled back from the session highs of about 1.1628 to trade at about 1.1579. The currency pair trades within an ascending channel formation in the 60-minute chart.

The pair has now advanced to trade several levels above the 100-hour moving average line. Thursday’s pullback prevented the currency pair from advancing deeper into the overbought conditions 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 the U.S. market. On Thursday, the U.S. initial jobless claims for the week ending June 6 came in higher than expected at 248k versus a forecast of 240k, unchanged from the preceding week’s claim count of 248k.

The producer price index for May missed the expected (MoM) change of 0.2% with a change of 0.1%. The (YoY) equivalent was in line with the estimate of 2.6%. On the other hand, the producer price index ex-food and energy for the month missed both the (MoM) and (YoY) expectations of 0.3% and 3.1%, respectively with 0.1% and 3%.

Earlier in the week, the U.S. consumer price index for May came in lower than expected with 0.1% (MoM) versus a forecast of 0.2%. The (YoY) equivalent also fell short of 2.5% with 2.4%. The consumer price index ex-food and energy missed the expected (MoM) and (YoY) changes of 0.3% and 2.9%, respectively with changes of 0.1% and 2.8%.

In the EU, trades will be looking forward to Germany’s harmonised index of consumer prices data for May on Friday.

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 recover from overbought conditions.

Therefore, the bears will look to stretch the current pullback towards 1.1528 or lower to 1.1477. On the other hand, the bulls will look to pounce on extended gains at about 1.1628 or higher at 1.1678.

EUR/USD Technical Analysis (the Daily Chart)

In the daily chart, the EUR/USD currency pair trades within an ascending channel formation. The 14-day RSI also supports a long-term bullish bias as it edges closer to overbought conditions.

Therefore, the bulls will look to ride the current rally towards 1.1780 or higher to 1.1970. On the other hand, the bears will look to pounce on pullbacks at about 1.1391 or lower at 1.1200.