On Wednesday, the EUR/USD currency pair pulled back from the session highs of about 1.2085 to trade at about 1.1935. The currency pair also completed a downward breakout from 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 both markets. On Wednesday. Germany’s GfK Consumer Confidence Survey for February outperformed the expectation of -25.8, with a reading of -24.1, up from -26.9.

Earlier in the week, Germany’s IFO Business Climate for January missed the expectation of 88.1, with a reading of 87.6, unchanged from the previous period. On the other hand, the IFO for the current assessment edged slightly higher to 85.7, up from 85.6, while the IFO expectations fell to 89.5, down from 89.7.

In the U.S., the Federal Reserve kept the base interest rate unchanged at 3.75%, in line with expectations. Earlier in the week, the US housing price index for November exceeded the (MoM) forecast of 0.3%, with 0.6%.

The durable goods orders for the month also beat the expected change of 0.5%, with a change of 5.3%. The durable goods orders ex-transportation came in stronger than expected, with 0.5% versus 0.3%. Traders will be looking forward to the initial jobless claims data on Thursday.

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

Technically, the EUR/USD currency pair has recently completed a downward breakout from an ascending channel formation. The 14-hour RSI also supports a bearish bias as it edges closer to oversold conditions.

Therefore, the bears will look to extend the current pullback towards 1.1858 or lower to 1.1778. On the other hand, the bulls will look to pounce on profits at about 1.2012 or higher at 1.2085.

EUR/USD Technical Analysis (the Daily Chart)

In the daily chart, the EUR/USD currency pair trades within an ascending channel formation. The 14-day RSI also supports a bullish bias as it edges closer to overbought conditions.

Therefore, the bulls will look to extend the current run of gains toward 1.2274 or higher to 1.2604. On the other hand, the bears will look to pounce on pullbacks at about 1.1584 or lower at 1.1254.