The EUR/CHF currency pair on Friday pulled back off the trendline resistance before finding strong support at about 0.9650. The currency pair continues to trade within a descending channel formation in the 60-min chart.

The pair has now fallen to trade several levels below the 100-hour moving average line. As a result, the currency pair seems to be trading closer to the oversold conditions of the 14-hour RSI.

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 Thursday, the European Central Bank raised the base interest rate by 75 basis points to 1.25%, up from 0.5%. The committee also raised the base deposit rate to 0.75% from 0%.

On the other hand, the EU gross domestic product for Q2 outperformed the (QoQ) estimate of 0.6% with a change of 0.8%. The (YoY) equivalent also outshone 3.9% with a change of 4.1%. Earlier in the week, EU retail sales for July missed the expectation of 0.9% with a change of 0.7% (MoM).

In Switzerland, the seasonally adjusted gross domestic product for Q2 grew by 0.3% (QoQ) compared to a growth rate of 0.5% in the previous reading. On the other hand, the (YoY) equivalent missed the expected growth of 3% with a change of 2.8%. On Thursday, the seasonally-adjusted unemployment rate for August outperformed the expectation of 2.2% with 2.1%.

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

Technically, the EUR/CHF currency pair seems to be trading within a descending channel formation in the 60-min chart. This indicates a significant short-term bearish bias in the market sentiment.

Therefore, the bears will be looking to extend the current sequence of declines toward 0.9628 or lower to 0.9602. On the other hand, the bulls will be targeting potential rebounds at about 0.9676 or higher at 0.9703.

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 indicates a significant long-term bearish bias in the market sentiment.

Therefore, the bears will be targeting long-term profits at about 0.9569 or lower at 0.9460. On the other hand, the bulls will look to pounce on potential rebounds at about 0.9737 or higher at 0.9861.