On Wednesday, the EUR/USD currency pair pulled back from the session highs of about 1.1760 to trade at about 1.1705. 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 Tuesday, Germany’s ZEW survey for the current situation missed the expectation of -70, with a reading of -73.7. The ZEW survey for economic sentiment for the month also missed the forecast of -5, with a reading of -17.2, while the EU’s ZEW survey for the current situation fell short of -3.6, with a reading of -20.4. 

Earlier in the week, Germany’s producer price index for March outperformed the expected (MoM) change of 1.4%, with a change of 2.5%. Looking forward, traders will be waiting for the preliminary German and EU HCOB Composite, Manufacturing, and Services PMIs for April on Thursday.

In the US, the retail sales for March beat the expected change of 1.4%, with a change of 1.7%  (MoM). The retail sales control group for the period also beat the estimated change of 0.2%, with a change of 0.7%, while the retail sales ex-autos outshone the (MoM) forecast of 1.4%, with a change of 1.9%. Elsewhere, the pending home sales for March exceeded the (MoM) expectation of 0.1%, with a change of 1.5%.

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 also supports a bearish bias as it edges closer to oversold conditions.

Therefore, the bears will look to stretch the latest pullback towards 1.1651 or lower to 1.1595. On the other hand, the bulls will look to pounce on rebounds at about 1.1760 or higher at 1.1819.

EUR/USD Technical Analysis (the Daily Chart)

In the daily chart, the EUR/USD currency pair trades within a sideways channel formation. However, the 14-day RSI has recently bounced back to move closer to overbought conditions.

Therefore, the bulls will look to extend the latest rebound towards 1.1898 or higher to 1.2088. On the other hand, the bears will look to pounce on pullbacks at about 1.1499 or lower at 1.1290.