On Wednesday, the EUR/USD currency pair pulled back from the session highs of about 1.1738 to trade at about 1.1683. The currency pair also completed a downward breakout from an ascending channel formation in the 60-minute chart.

The pair continues to trade slightly above the 100-hour moving average line, despite the pullback. The latest pullback helped the currency pair recover from the overbought 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 U.S. pending home sales for December missed the expected (MoM) change of -0.3%, with a change of -9.3%. Earlier in the week, the average 4-week ADP employment change improved to 8k, up from -11.25k. Looking forward, traders will be waiting for the US Q3 gross domestic product data for Q3 on Thursday, ahead of the personal expenditures data for October and November later in the day.

In the EU, Germany’s producer price index for December missed the (MoM) forecast of -0.1%, with a change of -0.2%. The (YoY) equivalent also fell short of -2.4%, with a change of -2.5%. The country’s ZEW survey for the current situation in January came in better than expected, with -72.7 versus a forecast of -75.5. The ZEW survey economic sentiment for the period also outshone the forecast of 50, with a reading of 59.6.

On the other hand, the EU’s ZEW survey economic sentiment for the month beat the expectation of 35.2, with a reading of 40.8. Earlier in the week, the EU’s harmonized index of consumer prices for December matched the expectation of 0.2% (MoM). The core harmonized consumer prices for the period were also in line with the (YoY) forecast of 2.3%.

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

Technically, the EUR/USD currency pair has recently completed a downward breakout from an ascending channel formation in the 60-minute chart. The 14-hour RSI also supports a bearish sentiment as it edges closer to oversold conditions.

Therefore, the bears will look to extend the latest pullback towards 1.1631 or lower to 1.1578. On the other hand, the bulls will look to pounce on profits at about 1.1738 or higher at 1.1788.

EUR/USD Technical Analysis (the Daily Chart)

In the daily chart, the EUR/USD currency pair trades within a sideways channel formation. However, it has recently bounced back to avoid falling into oversold conditions.

Therefore, the bulls will look to stretch the latest rebound towards 1.1914 or higher to 1.2153. On the other hand, the bears will look to pounce on profits at about 1.1473 or lower at 1.1235.