On Tuesday, the EUR/CHF currency pair extended Monday’s pullback to trade at about 0.9221 after the latest EU data. The currency pair trades within a sideways channel formation in the 60-minute chart.

The latest pullback pushed the pair closer to the 100-hour moving average line. However, the currency pair still has plenty of room left to run before reaching the oversold levels of the 14-hour RSI.

EUR/CHF Fundamentals Overview

From a fundamental perspective, the EUR/CHF currency pair trades during a relatively busy period in the EU market. On Tuesday, the preliminary German consumer price index for June missed the expectation of 0%, with -0.3% (MoM). The (YoY) equivalent also fell short of 2.5%, with 2.3%. 

On the other hand, Germany’s preliminary harmonized index of consumer prices for June missed the expected (MoM) and (YoY) changes of 0.1% and 2.6%, respectively, with changes of -0.2% and 2.4%. Elsewhere, Germany’s unemployment change for May outperformed the expected change of 10k, with a change of -1k. The seasonally adjusted unemployment rate for the month was unchanged at 6.3%, in line with expectations.

Germany’s retail sales for May came in stronger than expected, with a (MoM) change of 1.1%, versus a forecast of -0.1%. The (YoY) equivalent also outperformed the expected change of 0%, with a change of 1.8%. Earlier in the week, the EU’s economic sentiment indicator for June beat the forecasted reading of 94.3, with a reading of 95, up from 93.7 in May. The consumer confidence for the period was unchanged at -17.7, in line with expectations.

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

Technically, the EUR/CHF currency pair trades within a sideways channel formation in the 60-minute chart. However, the 14-hour RSI has recently pulled back to avoid entering overbought conditions.

Therefore, the bears will look to stretch the latest pullback towards 0.9206 or lower to 0.9191. On the other hand, the bulls will look to pounce on rebounds at about 0.9235 or higher at 0.9250.

EUR/CHF Technical Analysis (the Daily Chart)

In the daily chart, the EUR/CHF currency pair trades within an ascending channel formation in the 60-minute chart. However, the 14-day RSI has recently pulled back to avoid rallying into overbought conditions.

Therefore, the bears will look to stretch the current pullback towards 0.9175 or lower to 0.9131. On the other hand, the bulls will look to pounce on profits at about 0.9265 or higher at 0.9307.