On Thursday, the EUR/USD currency pair pulled back from the session highs of 1.1744 to trade at a new week low of 1.1662 before bouncing back to 1.1697. The currency pair trades within a descending channel formation in the 60-minute chart.

The pair continues to trade below the 100-hour moving average line, despite the late rebound. Thursday’s rebound prevented the currency pair from 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. On Thursday, the U.S. initial jobless claims for the week ending July 4 fell to 227k, down from the previous week’s equivalent claim count of 233k, beating the forecast of 235k.

The continuing claims for the week ending June 27 also came in lower than expected, with 1.965 million versus a forecast of 1.98 million, up from 1.955 million. Earlier in the week, U.S. wholesale inventories for May matched the forecast of -0.3%, while the NFIB business optimism index for June missed the expectation of 98.7 with a reading of 98.6, down from 98.8 in May.

In the EU, Germany’s harmonised index of consumer prices for June matched the expected (MoM) and (YoY) forecasts of 0.1% and 2%, respectively. The consumer price index for the month was also in line with the estimates of 0% (MoM) and 2% (YoY). Earlier in the week, German imports for May missed the expected (MoM) change of -0.2%, with a change of -1.4%, while exports fell short of -0.9% with a change of -3.8%. 

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. However, the 14-hour RSI has recently bounced back to avoid falling into oversold conditions.

Therefore, the bulls will look to stretch the current rebound towards 1.1744 or higher to 1.1779. On the other hand, the bears will look to pounce on profits at about 1.1662 or lower at 1.1627.

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 extend the current pullback towards 1.1546 or lower to 1.1403. On the other hand, the bulls will look to pounce on profits at about 1.1835 or higher at 1.1976.