The EUR/USD currency pair on Thursday edged lower to trade at around 1.0843 following the latest round of the US jobless claims data. The currency pair peaked earlier in the week to trade just below the 1.1000 level but has since pulled back towards 1.0840 after a series of mixed US data.

The currency pair now appears to be on course to complete a bearish XABCD pattern that could keep the bearish bias for longer. The pair has also dropped closer to the oversold levels of the 14-hour RSI in the 60-min Chart.

EUR/USD Fundamentals Overview

From a fundamental perspective, the EUR/USD currency pair is trading at the back of a relatively busy period in the US market. On Thursday, Germany’s Harmonized Index for Consumer Prices for March came in line with expectations at 1.3% on a (YoY) basis, unchanged from the previous reading. The seasonally adjusted EU Industrial Production for February beat the (MoM) expectation of -0.2% with -0.1%.

In the US, Retail Sales Control Group for March beat the expected -2.0% with 1.7%. Retail Sales ex-autos slightly outperformed with -4.5% versus -4.8%. However, general retail sales for March missed the (MoM) expectation of -8% with -8.7% while Industrial production for the same period disappointed with -5.4% versus -4%.

On Thursday, Building Permits for March impressed with 1.353M versus an expectation of 1.3M (MoM). On the other hand, Housing Starts came short of the expected increment of 1.3M after delivering 1.216M starts. The Philadelphia Fed Manufacturing Index missed the expectation for April with -56.6 versus -30. The jobless claims numbers were slightly higher than expected missing 5.105M with 5.245M.

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

Technically, the EUR/USD currency pair appears to have recently dropped below the 100-hour and the 200-hour SMA lines. This indicates a potential reversal in the short-term market sentiment. The bears now have short-term control.

Therefore, they will be targeting short-term profits at around 1.0783 or lower at 1.0723. On the other hand, the bulls will look to pounce for profits at around 1.0897 or higher at 1.0954.

EUR/USD Technical Analysis (the Daily Chart)

In the daily chart, the EUR/USD currency pair appears to be trading within a descending channel. This indicates a long-term bearish bias in the market sentiment. The pair is pinned below the current levels of the 100-day and 200-day SMA lines.

The bulls will be targeting long-term profits at around 1.0987 or higher at 1.1151. On the other hand, the bears will look to extend the current pullback by targeting profits at around 1.0638 or lower at 1.0506.