On Wednesday, the EUR/USD currency pair pulled back from the session highs of about 1.1679 to trade at about 1.1652. The currency pair trades within a descending channel formation on the 60-minute chart.

The pair has now fallen to trade a few levels below the 100-hour moving average line. However, the currency pair bounced back slightly 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. In the US, durable goods orders for July outperformed the expectation of 0.7%, with a change of 1.1%. On the other hand, the durable goods orders ex-transportation for the period missed the expectation of 0.5%, with a change of 0.4%. 

The personal consumption expenditures – price index for July outperformed the forecasted (MoM) change of 0.1%, with a change of 0.2%. The (YoY) equivalent also outshone the forecast of 3.6%, with a change of 37%. On the other hand, the core personal consumption expenditures – price index for the period matched both the (MoM) and (YoY) forecasts of 0.2% and 3.3%, respectively.

In the EU, Germany’s gross domestic product for Q2 outperformed the expected (QoQ) change of 0.2%, with a change of 0.3%. The (YoY) equivalent also beat the estimated change of 0.9%, with a change of 1%. Elsewhere, the IFO business climate for August improved to 88.8, up from 86.7, beating the forecast of 87.2. 

The IFO current assessment for the month also beat 87, with a reading of 88.5, up from the previous month’s equivalent of 86.5, while the IFO expectations for the period outshone 87.5, with 89.1, up from 86.8.

EUR/USD Technical Analysis (the 60-min Chart)

Technically, the EUR/USD currency pair trades within a descending channel formation on the 60-minute chart. The 14-hour RSIU has also pulled back to move closer to oversold conditions. 

Therefore, the bears will look to extend the latest pullback towards 1.1622 or lower to 1.1591. On the other hand, the bulls will look to pounce on rebounds at about 1.1679 or higher at 1.1708.

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 has recently pulled back to recover from overbought conditions.

Therefore, the bears will look to pounce on the current pullback at about 1.1550 or lower at 1.1448. On the other hand, the bulls will look to pounce on profits at about 1.1740 or higher at 1.1842.