On Thursday, the EUR/USD currency pair pulled back from the session highs of about 1.1663 to trade at about 1.1607. The currency pair trades within a descending channel formation in the 60-minute chart.
The pair has now plummeted to trade a few levels below the 100-hour moving average line. As a result, the currency pair is on the verge of 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 Thursday, the EU’s preliminary HCOB Manufacturing PMI for August outperformed the expectation of 49.5 with a reading of 50.5.
The preliminary HCOB Composite PMI for the period also beat 50.7 with a reading of 51.1, while the preliminary HCOB Services PMI missed the estimate of 50.8 with a reading of 50.7. The EU’s preliminary consumer confidence for August also fell short of the forecasted reading of -14.9, with a reading of -15.5.
In the US, initial jobless claims for last week increased to 235k, up from 224k in the preceding week, missing the forecasted claim count of 225k. The Philadelphia Fed Manufacturing Survey for August also fell short of 7, with a reading of -0.3.
On the other hand, the preliminary US S&P Global Manufacturing PMI for August beat the expectation of 49.5, with a reading of 53.3. The preliminary S&P Global Services PMI for the period also beat the forecast of 54.2, with a reading of 55.4.
EUR/USD Technical Analysis (the 60-min Chart)
Technically, the EUR/USD currency pair trades within a descending channel formation in the 60-minute chart. The 14-hour RSI also supports a bearish bias as it moves closer to oversold conditions.
Therefore, the bears will look to extend the current declines toward 1.1581 of lower to 1.1557. On the other hand, the bulls will look to pounce on rebounds at about 1.1635 or higher at 1.1663.
EUR/USD Technical Analysis (the Daily Chart)
In the daily chart, the EUR/USD currency pair trades within a descending channel formation. Furthermore, the 14-day RSI has recently pulled back to avoid rallying into overbought conditions.
Therefore, the bears will look to extend the current pullback towards 1.1489 or lower to 1.1375. On the other hand, the bulls will look to pounce on profits at about 1.1714 or higher at 1.1831.