On Thursday, the EUR/USD currency pair pulled back from the session highs of about 1.1710 to trade at about 1.1646. The currency pair trades within a descending channel formation in the 60-minute chart.

The pair has now fallen to trade slightly below the 100-hour moving average line. However, the currency pair bounced back later to avoid falling into 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 U.S. producer price index for July outperformed the expected (MoM) change of 0.2% with a change of 0.9%. The (YoY) equivalent also outshone the forecast of 2.5% with a change of 3.3%.

The U.S. producer price index ex-food and energy for the month exceeded the (MoM) and (YoY) forecasts ogf 0.2% and 2.9%, respectively, with 0.9% and 3.7%.  Elsewhere, the initial jobless claims for the week ending August 8 fell slightly to 224k, down from 227k in the preceding week, beating the forecasted claim count of 228k.

In the EU, the seasonally-adjusted industrial production for June missed the expectation of -1% with a change of -1.3%. The preliminary EU gross domestic product for Q2 matched the seasonally adjusted (QoQ) and (YoY) changes of 0.1% and 1.4%. On the other hand, the seasonally-adjusted employment change for the quarter was in line with the estimate of 0.1% (QoQ).

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. However, the 14-hour RSI bounced back later to avoid falling into oversold conditions.

Therefore, the bulls will look to extend the late rebound towards 1.1710 or higher to 1.1780. On the other hand, the bears will look to pounce on extended declines at about 1.1580 or lower at 1.1512.

EUR/USD Technical Analysis (the Daily Chart)

In the daily chart, the EUR/USD currency pair trades within an ascending channel formation. However, the 14-day RSI still has room left to run before reaching overbought conditions.

Therefore, the bulls will look to ride the current run of gains toward 1.1825 or higher to 1.2022. On the other hand, the bears will look to pounce on pullbacks at about 1.1447 or lower at 1.1257.