On Wednesday, the EUR/USD currency pair pulled back from the session highs of about 1.1797 to trade at about 1.1751. The currency pair trades within an ascending channel formation in the 60-minute chart. 

The pair continues to trade a few levels above the 100-hour moving average line, despite the pullback. The currency pair has also pulled back to 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 EU’s producer price index for March came in better than expected, with a (MoM) change of 3.4% versus a forecast of 3.3%. The (YoY) equivalent also outshone the forecasted change of 1.8%, with a change of 2.1%. 

Elsewhere, the EU’s HCOB Composite PMI for April exceeded the expectation of 48.6, with a reading of 48.8. Germany’s HCOB Composite PMI also exceeded the forecast of 48.3, with a reading of 48.4, up from 48.3, while the HCOB Services PMI for the period was unchanged at 46.9, in line with expectations.

In the US, the ADP employment change for April rose to 109k, up from 61k in March, beating the forecasted change of 99k. Earlier in the week, the US ISM Services PMI for April fell to 53.6, down from 54, missing the forecasted tally of 53.7. The S&P Global Composite PMI for the month also missed the expectation of 52, with a reading of 51.7, down from 52. On the other hand, JOLTS Job Openings for March edged slightly lower to 6.866 million, down from 6.922 million, beating the expectation of 6.83 million. 

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

Technically, the EUR/USD currency pair trades within an ascending channel formation in the 60-minute chart. However, the 14-hour RSI has recently pulled back to recover from overbought conditions.

Therefore, the bears will look to stretch the latest pullback towards 1.1704 or lower to 1.1659. On the other hand, the bulls will look to pounce on profits at about 1.1797 or higher at 1.1841.

EUR/USD Technical Analysis (the Daily Chart)

In the daily chart, the EUR/USD currency pair also trades within an 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 1.1610 or lower to 1.1458. On the other hand, the bulls will look to pounce on profits at about 1.1891 or higher at 1.2038.