On Thursday, the EUR/USD currency pair pulled back from the session highs of about 1.1809 to trade at 1.1716 before bouncing back to 1.1756. The currency pair trades within a descending channel formation in the 60-minute chart.

The currency pair continues to trade slightly below the 100-hour moving average line, despite the rebound. The pair still has room left to run before reaching 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 US initial jobless claims for the week ending June 27 fell to 233k, down from 237k in the preceding week, beating the forecasted claim count of 240k. The U.S. nonfarm payrolls for June also came in better than expected, with 147k versus a forecast of 110k, up from the previous month’s equivalent of 144k.

The unemployment rate last month fell to 4.1%, down from 4.2% in May, beating the expectation of 4.3%, while the average hourly wage growth for the period missed the expected (MoM) and (YoY) changes of 0.3% and 3.9%, respectively, with changes of 0.2% and 3.7%.

In the EU, the HCOB composite PMI for June came in stronger than expected with 50.6 versus a forecast of 50.2. Germany’s HCOB composite PMI matched the forecast of 50,4, while the Services PMI beat 49.4 with a reading of 49.7. Earlier in the week, Germany’s seasonally adjusted unemployment rate for June came in lower than expected at 6.3% versus a forecast of 6.4%, unchanged from May.

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 still has room left to run before entering oversold conditions.

Therefore, the bears will look to stretch the current decline towards 1.1729 or lower to 1.1700. On the other hand, the bulls will look to pounce on rebounds at about 1.1781 or higher at 1.1809.

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 1.1660 or lower to 1.1562. On the other hand, the bulls will look to ride the current rally towards 1.1852 or higher to 1.1949.