On Thursday, the EUR/USD currency pair pulled back from the session highs of about 1.1789 to trade at about 1.1746. 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 pullback. Thursday’s pullback prevented the currency pair from advancing further towards 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 Thursday, the U.S. initial jobless claims for the week ending July 18 came in lower than expected, with 217k versus a forecast of 227k, down from the preceding week’s equivalent of 221k. 

The preliminary S&P Global Manufacturing PMI for December came in lower than expected, with 49.5 versus a forecast of 52.5, while the preliminary S&P Global Services PMI for the period beat the forecast of 53 with a reading of 55.2. Traders will be looking forward to the U.S. durable goods orders for June on Friday.

In the EU, the European Central Bank chose to keep the base interest rate unchanged at 2.15%, in line with expectations. The deposit rate was also kept flat at 2%, as forecasted. The EU’s preliminary HCOB Services PMI for July came in better than expected, with 51.2 versus a forecast of 50.8. The HCOB composite PMI for the period also beat 50.8, with a reading of 51, while the Manufacturing PMI was in line with the estimate of 49.8. 

Elsewhere, Germany’s HCOB Services PMI outshone the forecast of 50, with 50.1, while the HCOB Manufacturing and Composite PMIs missed 49.4 and 50.7, respectively, with 49.2 and 50.3.

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

Technically, the EUR/CHF 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 1.1700 or lower to 1.1656. On the other hand, the bulls will look to pounce on profits at about 1.1789 or higher at 1.1836.

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 still has room left to run before reaching overbought conditions. 

Therefore, the bulls will look to ride the current run of gains toward 1.1934 or higher to 1.2129. On the other hand, the bears will look to pounce on pullbacks at about 1.1553 or lower at 1.1361.