On Wednesday, the EUR/USD currency pair pulled back from the session highs of about 1.1713 to trade at about 1.1672. The currency pair trades within a 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 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 Wednesday, Germany’s preliminary consumer price index for April missed the expected (YoY) change of 3%, with a change of 2.9%. The (MoM) equivalent matched the forecasted change of 0.6%. 

On the other hand, the preliminary harmonized index of consumer prices for the period fell short of the forecasted (MoM) change of 0.7%, with a change of 0.5%, while the (YoY) equivalent missed 3%, with a change of 2.9%. Elsewhere, the EU’s consumer sentiment indicator for May edged lower to 93, down from 96.2, missing the forecasted reading of 95.3.

In the US, the durable goods orders for March outperformed the expected change of 0.5%, with a change of 0.8%. Durable goods orders ex-transportation also beat the forecasted change of 0.4%, with a change of 0.9%, while the nondefense capital goods orders ex-aircraft outshone the estimated change of 0.6%, with a change of 3.3%.  

Elsewhere, the US building permits for March missed the expectation of 1.39 million, with a tally of 1.372 million, while housing starts for the period beat 1.4 million, with a tally of 1.502 million.

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 has also pulled back to move closer to oversold conditions.

Therefore, the bears will look to stretch the latest pullback towards 1.1623 or lower to 1.1575. On the other hand, the bulls will look to pounce on rebounds at about 1.1713 or higher at 1.1754.

EUR/USD Technical Analysis (the Daily Chart)

In the daily chart, the EUR/USD currency pair trades within a sharply ascending channel formation. However, the 14-day RSI has recently pulled back to avoid entering overbought conditions.

Therefore, the bears will look to extend the latest pullback towards 1.1575 or lower to 1.1481. On the other hand, the bulls will look to pounce on profits at about 1.1756 or higher at 1.1845.