On Wednesday, the EUR/CHF currency pair bounced back from the session lows of about 0.9447 to trade at about 0.9469. The currency pair trades within an ascending channel formation on the 60-minute chart.

The currency pair continues to trade a few levels above the 100-hour moving average line, despite making a late pullback. Wednesday’s pullback helped the currency pair recover from the overbought 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 Wednesday, the German retail sales for August missed the expected (YoY) change of 2%, with a change of 1.3%. The unemployment change for August also fell short of the forecast change of 5k, with a change of 12k, up from the preceding month’s equivalent of 4k. On the other hand, the unemployment rate for the period was unchanged at 6.4%, in line with expectations.

On the other hand, the preliminary consumer price index for September outperformed the expected change of 0.5%, with a change of 0.6% (MoM). The preliminary harmonized index of consumer prices for the period also beat the forecast (MoM) and (YoY) changes of 0.5% and 3.1%, respectively, with changes of 0.6% and 3.3%. 

Earlier in the week, the EU’s consumer confidence for September remained unchanged at -16.5, as expected. On the other hand, the EU economic sentiment indicator for the month fell short of the forecast of 99, with a reading of 97.9, down from the previous month’s equivalent of 98.4.

Traders will be waiting for the Swiss consumer price index data for September and the retail sales data for August on Thursday.

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

Technically, the EUR/CHF currency pair trades within an ascending channel formation on the 60-minute chart. However, the 14-hour RSI has recently pulled back to recover from overbought conditions.

Therefore, the bears will look to stretch the latest pullback towards 0.9447 or lower, to 0.9423. On the other hand, the bulls will look to pounce on profits at about 0.9489 or higher, at 0.9512.

EUR/CHF Technical Analysis (the Daily Chart)

In the daily chart, the EUR/CHF currency pair also trades within an ascending channel formation. The 14-day RSI also supports a bullish bias as it moves closer to overbought conditions.

Therefore, the bulls will look to stretch the current run of gains toward 0.9533 or higher, up to 0.9598. On the other hand, the bears will look to pounce on pullbacks at about 0.9399 or lower, down to 0.9328.