On Wednesday, the EUR/USD currency pair pulled back from the session highs of about 1.1631 to trade at about 1.1587. The currency pair trades within an ascending channel formation in the 60-minute chart.
The pair continues to trade slightly above the 100-hour moving average line, despite the latest pullback. As a result, 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, Germany’s IFO Business Climate for March beat the expectation of 86.1, with a reading of 86.4. The IFO for the current situation also outshone the forecast of 86, with a reading of 86.7, while the IFO expectations for the period matched the forecast of 86.
Earlier in the week, the preliminary German HCOB Manufacturing PMI for March beat the expectation of 49.8, with a reading of 51.7. The preliminary HCOB Composite PMI for the period also beat 51.8, with a reading of 51.9, while the preliminary HCOB Services PMI missed the estimate of 52.5, with a reading of 51.2.
On the other hand, the EU’s preliminary HCOB composite PMI fell short of 51.1, with a reading of 50.5. The preliminary HCOB Services PMI also missed 51, with a reading of 50.1, while the preliminary HCOB Manufacturing PMI beat 49.5, with a reading of 51.4.
In the US, nonfarm productivity for Q4 missed 2.5%, with a change of 1.8%, while unit labor costs for the quarter outshone the estimate of 3.3%, with a change of 4.4%. The preliminary S&P Global Manufacturing PMI for March also came in better than expected, with 52.4 versus a forecast of 51, while the preliminary S&P Global Services PMI for the period missed 51.7, with a reading of 51.1.
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 entering overbought conditions.
Therefore, the bears will look to stretch the latest pullback towards 1.1537 or lower to 1.1488. On the other hand, the bulls will look to pounce on profits at about 1.1631 or higher at 1.1682.
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 has also recently bounced back to avoid falling into oversold conditions.
Therefore, the bulls will look to stretch the latest rebound towards 1.1817 or higher to 1.2066. On the other hand, the bears will look to pounce on profits at about 1.1335 or lower at 1.1076.