The EUR/CHF currency pair on Friday spiked to find the trendline resistance before pulling back to trade at about 1.0330. The currency pair has rallied to trade at a high of 1.0361 earlier in the week.
The pair continues to trade within a gently descending channel formation in the 60-min chart. However, it still remains far from reaching the 100-hour moving average line below. Therefore, more declines could continue, thus pushing it towards oversold conditions.
EUR/CHF Fundamentals Overview
From a fundamental perspective, the EUR/CHF currency pair is trading at the back of a relatively busy period in the EU market. On Friday the S&P Global Manufacturing PMI outperformed the expectation of 54.7 with a performance index of 55.3. In addition, the Services PMI also came out stronger with a reading of 57.7 compared to the estimate of 55. As a result, the two readings pushed the PMI Composite index to 55.8, significantly beating the consensus market estimate of 53.3.
Elsewhere, Germany’s manufacturing PMI returned a lower reading of 54.1 compared to the forecasted reading of 54.5. But the S&P Global/BME Services Index outshone 55.5 with 57.9, pushing the composite data to 54.5 versus the industry estimate of 54.1. Earlier in the week, the EI core CPI data failed to match expectations, coming short, while the German PPI impressed.
EUR/CHF Technical Analysis (the 60-min Chart)
Technically, the EUR/CHF currency pair seems to be trading within a gently descending channel formation in the 60-min chart. This indicates a slight short-term bearish bias in the market sentiment.
Therefore, the bears will be looking to ride the current downward movement towards 1.0307 or lower to 1.0270. On the other hand, the bulls will be targeting potential rebound profits at about 1.0361, or higher at 1.0397.
EUR/CHF Technical Analysis (the Daily Chart)
In the daily chart, the EUR/CHF currency pair seems to be trading within a descending channel formation. This also suggests a significant long-term bearish bias in the market sentiment.
Therefore, the bears will be targeting long-term profits at about 1.0183, or lower at 1.0024. On the other hand, the bulls will target potential upward breakout profits at about 1.0495, or higher at 1.0608.