On Tuesday, the EUR/USD currency pair pulled back from the session highs of about 1.1428 to trade at about 1.1402. The currency pair trades within a descending channel formation on the 60-minute chart.
The pair has now fallen to trade a few levels below the 100-hour moving average line. As a result, the currency pair is on the verge of entering 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 Tuesday, Germany’s ZEW survey for the current situation in July outperformed the expected reading of -77.8, with a reading of -77.6, up from the previous month’s equivalent of -81. The ZEW survey economic sentiment for the period also exceeded the forecast of 18, with a reading of 26.3, up from 10.5 in June.
The EU’s ZEW survey for economic sentiment in July also beat the forecasted reading of 11.2, with a reading of 23.4, up from the preceding month’s equivalent of 9.5. On Monday, Germany’s producer price index for June missed the expected (MoM) change of -0.2%, with a change of -0.3%.
Looking forward, traders will be waiting for the EU’s interest rate decision and monetary policy statement on Thursday, ahead of Friday’s preliminary HCOB Manufacturing, Services, and Composite PMIs for June.
In the US, traders will be waiting for the US initial jobless claims data for last week on Thursday, ahead of the preliminary S&P Global Manufacturing, Services, and Composite PMIs for June on Friday.
EUR/USD Technical Analysis (the 60-min Chart)
Technically, the EUR/USD currency pair trades within a descending channel formation on the 60-minute chart. The 14-hour RSI also supports a bearish bias as it edges closer to oversold conditions.
Therefore, the bears will look to stretch the current pullback towards 1.1379 or lower to 1.1355. On the other hand, the bulls will look to pounce on rebounds at about 1.1428 or higher at 1.1452.
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 oversold conditions.
Therefore, the bulls will look to extend the current rebound towards 1.1505 or higher to 1.1620. On the other hand, the bears will look to pounce on profits at about 1.1293 or lower at 1.1173.
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