The EUR/CHF currency pair on Friday pulled back off session highs of about 1.0695 to trade at around 1.0683 following the latest EU retails sales data. The currency pair continues to trade within a descending channel in the 60-min chart.

The pair is now pinned just off the 100-hour and the 200-hour SMA lines. It continues to trade centrally in the 14-hour RSI. The current trend could continue through next week pending an impactful economic event.

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 EU retail sales data for September missed the expected (YoY) change of 2.8% with a change of 2.2%. Retail sales data for the period also came short of the expected (MoM) change of -0.1% with a change of -0.2%. 

On Wednesday, the EU Markit PMI composite for October beat the expectation of 49.4 with 50. The Services PMI also outperformed the expected reading of 46.2 with a reading of 46.9. Earlier in the week, the EU Markit Manufacturing PMI beat the expectation of 54.4 with 54.8.

In Switzerland, the 3M SECO consumer confidence for Q4 missed the expectation of -8 with -13. On Tuesday, the consumer price index for October matched the (YoY) expectations of -0.6 with -0.6. On Monday, the Swiss SVME Purchasing Managers’ Index for October missed the expectation of 54.4 with 52.3.

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

Technically, the EUR/CHF currency pair appears to be trading within a gently downward sloping channel in the 60-min chart. This indicates a slight short-term bearish bias in the market sentiment. 

The bulls will be targeting short-term profits at around 1.0694 or 1.0707. On the other hand, the bears will look to pounce for profits at around 1.0672 or lower at 1.0660.

EUR/CHF Technical Analysis (the Daily Chart)

In the daily chart, the EUR/CHF currency pair appears to be trading within a slightly ascending channel off a descending channel. This indicates an attempt by the bulls to trigger a trend reversal. The pair has recently bounced off the 14-day RSI.

The bulls will be looking to build on this rebound by targeting profits at around 1.0750 or higher at 1.0830. On the other hand, the bears will look to pounce for long-term profits at around 1.0601 or lower at 1.0513.