On Wednesday, the EUR/USD currency pair pulled back from the session highs of about 1.1927 to trade at about 1.1883. The currency pair trades within an ascending channel formation in the 60-minute chart. 

The pair continues to trade slightly above the 100-hour moving average line, despite the latest pullback. Wednesday’s pullback pushed the currency pair closer to 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 the US market. On Wednesday, the US nonfarm payrolls for January outperformed the expectation of 70k, with a tally of 130k, up from the previous month’s equivalent of 48k. 

The average hourly earnings for the month grew by 0.4% (MoM), beating the forecasted change of 0.3%. The (YoY) equivalent also outshone the estimate of 3.6%, with a change of 3.7%. The unemployment rate for the month also came in better than expected at 4.3% versus a forecast of 4.4%, down from 4.4% in December.

On Tuesday, the US retail sales for December missed the expected (MoM) change of 0.4%, with a change of 0%. The retail sales ex-autos for the period also fell short of 0.3%, with a change of 0%. The employment cost index for Q4 also missed the expected change of 0.8%, with a change of 0.7%. 

In the EU, traders will be waiting for the gross domestic product data for Q4 and the employment change for the quarter on Friday, ahead of the data for the U.S. consumer price index for January.

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 move closer to oversold conditions.

Therefore, the bears will look to stretch the current pullback towards 1.1768 or lower to 1.1663. On the other hand, the bulls will look to pounce on rebounds at about 1.1989 or higher at 1.2092.

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 1.1589 or lower to 1.1287. On the other hand, the bulls will look to pounce on profits at about 1.2145 or higher at 1.2420.