On Wednesday, the EUR/USD currency pair pulled back from the session highs of about 1.1615 to trade at about 1.1589. The currency pair trades within an ascending channel formation in the 60-minute chart.

Wednesday’s pullback pushed the pair slightly below the 100-hour moving average line. As a result, the currency pair is now closer to entering 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 harmonized index of consumer prices for May matched the expectation of 0.1% (MoM). 

On the other hand, the core harmonized index of consumer prices for the period beat the expected (YoY) change of 2.5%, with a change of 2.6%. Earlier in the week, the EU industrial production for April fell short of the forecasted (MoM) change of 0.3%, with a change of 0.1%. 

Elsewhere, the ZEW survey economic sentiment for June outperformed the expectation of -7.2, with a reading of 9.5, up from -9.1 in May. Germany’s ZEW survey expectations for the month missed -77.5, with a reading of -81, down from -77.8, while the ZEW survey economic sentiment for the period beat -6, with a reading of 10.5, up from -10.2.

In the US, retail sales for May outperformed the expectation of 0.5%, with a change of 0.9% (MoM). The retail sales ex-autos for the month also beat 0.5%, with a change of 0.8% (MoM), while the pending home sales for the period exceeded the forecasted (MoM) change of 0.8%, with a change of 3.8%.

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 move closer to oversold conditions.

Therefore, the bears will look to stretch the latest pullback towards 1.1558 or lower to 1.1529. On the other hand, the bulls will look to pounce on profits at about 1.1615 or higher at 1.1643.

EUR/USD Technical Analysis (the Daily Chart)

In the daily chart, the EUR/USD currency pair trades within a descending channel formation. However, the 14-day RSI has recently bounced back to avoid falling into oversold conditions.

Therefore, the bulls will look to extend the current rebound towards 1.1687 or higher to 1.1785. On the other hand, the bears will look to pounce on profits at about 1.1490 or lower at 1.1392.