The EUR/CHF currency pair on Tuesday bounced off the key support at about 0.9820 after pulling back from session highs of about 0.9860. The currency pair continues to trade within a sharply descending channel formation in the 60-min chart.

The pair has now fallen to trade a few levels below the 100-hour moving average line. However, Tuesday’s late rebound prevented the pair from descending into the oversold levels 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 Tuesday, the German retail sales for March missed the (MoM) and (YoY) expectations of 0.4% and -6.1% with a change of -2.4% and -8.6%, respectively. On the other hand, The HCOB Manufacturing PMI for April beat the expected reading of 44 with a reading of 44.5. The EU HCOB Manufacturing PMI also outshone the forecasted reading of 45.5 with a reading of 45.8.

Elsewhere, the preliminary EU core harmonised index of consumer prices for April missed the (MoM) expectation of 1.1% with a change of 1%. The (YoY) equivalent also fell short of the expected change of 5.7% with a change of 5.6%. The preliminary general harmonised index of consumer prices for the period beat the (YoY) estimate of 6.9% with a change of 7%, while the (MoM) equivalent missed the expectation of 0.9% with a change of 0.7%. In Switzerland, the SVME purchasing manager’s index for April missed an expected reading of 46.3 with a reading of 45.3.

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

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

Therefore, the bears will be looking to extend the current run of declines toward 0.9814 or lower to 0.9804. On the other hand, the bulls will be targeting rebound profits at about 0.9836 or higher at 0.9845.

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 looking to ride the current streak of declines toward 0.9777 or lower to 0.9721. On the other hand, the bulls will be targeting long-term profits at about 0.9867 or higher at 0.9918.