On Wednesday, the EUR/USD currency pair pulled back from the session highs of about 1.1661 to trade at about 1.1626. The currency pair trades within a slightly ascending channel formation in the 60-minute chart.

Wednesday’s pullback pushed the pair towards the 100-hour moving average line. However, the currency pair still has some 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, the US ADP employment change for the 4-week period ending last week fell to 35.75k, down from the previous week’s equivalent of 40.75k. On the other hand, the housing price index for March edged higher with a 0.1% change, up from the previous month’s equivalent of -0.1%, as expected. 

Looking forward, traders will be waiting for the US durable goods data for April on Thursday, alongside the personal consumption expenditures data, and the gross domestic product data for Q1. 

In the EU, traders will be waiting for the EU’s business climate, consumer confidence, and the economic sentiment indicator figures for May on Thursday. On Friday, all eyes will be on Germany’s preliminary consumer inflation index and the preliminary harmonized index of consumer prices data for May. They will also be looking forward to Germany’s employment change for April and the unemployment rate for the month.

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 rallying into overbought conditions.

Therefore, the bears will look to stretch the latest pullback towards 1.1589 or lower to 1.1551. On the other hand, the bulls will look to pounce on profits at about 1.1661 or higher to 1.1697.

EUR/USD Technical Analysis (the Daily Chart)

In the daily chart, the EUR/USD currency pair trades within a descending channel formation. The 14-day RSI also supports a long-term bearish bias after pulling back to avoid rallying into overbought conditions.

Therefore, the bears will look to extend the current pullbacks toward 1.1510 or lower to 1.1402. On the other hand, the bulls will look to pounce on rebounds at about 1.1736 or higher at 1.1844.