On Thursday, the EUR/USD currency pair pulled back from the session highs of about 1.1744 to trade at about 1.1654. The currency pair trades within a slightly descending channel formation in the 60-minute chart.

The pair has now fallen to trade a few levels below the 100-hour moving average line. As a result, the currency pair plummeted 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 EU, Germany’s GfK consumer confidence survey for October improved to -22.3, up from -23.5 in the previous update, beating the forecasted reading of -23.3.

Earlier in the week, Germany’s IFI business climate for September missed the expected reading of 89.3, with a reading of 87.7. The IFO for the current assessment also fell short of 86.5, with a reading of 85.7, while the IFO expectations for the month missed 92, with 89.7.

In the U.S., durable goods orders for August outperformed the expected change of -0.5% with a change of 2.9%. The durable goods orders ex-transportation also outshone the estimate of 0% with a change of 0.4%, while the nondefense capital goods orders ex-aircraft beat the forecast of -0.1% with a change of 0.6%.

The annualised U.S. gross domestic product for Q2 outshone the expected change of 3.3% with a change of 3.8%. The gross domestic product price index also outperformed the forecast of 2% with a change of 2.1%. Elsewhere, the initial jobless claims for the week ending September 19 came in better than expected, with 218k versus a forecast of 235k.

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

Technically, the EUR/USD currency pair trades within a slightly descending channel formation in the 60-minute chart. The 14-hour RSI has also pulled back into oversold conditions.

Therefore, the bears will look to extend the current pullback towards 1.1568 or lower to 1.1484. On the other hand, the bulls will look to pounce on rebounds at about 1.1744 or higher at 1.1822.

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 avoid rallying into overbought conditions.

Therefore, the bears will look to extend the current pullback towards 1.1413 or lower to 1.1154. On the other hand, the bulls will look to pounce on profits at about 1.1975 or higher at 1.2186.