On Wednesday, the EUR/USD currency pair pulled back from the session highs of about 1.0345 to trade at about 1.0291. The currency pair trades within an ascending channel formation in the 60-minute chart.

Wednesday’s pullback pushed the pair closer to the 100-hour moving average line. It also prevented the currency pair from advancing deeper into 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 U.S. consumer price index for December outshone the forecast of 0.3% with a rate of 0.4%. The (YoY) equivalent was in line with the estimate of 2.9%, up from 2.7% in November.

On the other hand, the consumer price index ex-food and energy missed the expected (YoY) rate of 3.3% with a rate of 3.2%, down from 3.3%, while the (MoM) equivalent was in line with the estimate of 0.2%. The NY Empire State Manufacturing Index for January fell to -12.6, down from 2.1, missing the forecasted index of 3.

In the EU, the seasonally adjusted industrial production for November missed the expected (MoM) change of 0.3% with a change of 0.2%. The (MoM) equivalent was in line with the estimate of -1.9%. Germany’s wholesale price index for December also matched the forecasted (MoM) change of 0.1%.

Traders will be looking forward to the German consumer price index data for December and the harmonised index of consumer prices for the month on Thursday.

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 the overbought conditions.

Therefore, the bears will look to extend the current pullback towards 1.0243 or lower to 1.0191. On the other hand, the bulls will look to pounce on rebounds at about 1.0345 or higher at 1.0393.

EUR/USD Technical Analysis (the Daily Chart)

In the daily chart, the EUR/USD currency pair trades within a descending channel formation. However, the 14-day RSI has recently bounced back to avoid falling into the oversold conditions.

Therefore, the bulls will be targeting extended rebounds at about 1.0458 or higher at 1.0616. On the other hand, the bears will look to ride the current decline towards 1.0125 or lower to 0.9961.