The EUR/CHF currency pair on Thursday bounced off the 1.0720 level to surge above 1.0733 after the latest round of the EU data. The currency pair continues to trade within a descending channel formation in the 60-min chart.
The currency pair continues to trade just beneath the 100-hour moving average despite Thursday’s rebound. The recent pullback has also pushed it to levels it last traded last November. A major rebound could be on the cards.
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, German factory orders for June beat the expected (MoM) change of 1.9% with a change of 4.1%. However, the (YoY) equivalent came short of 67.5% with a change of 26.2%. On Wednesday, EU retail sales for June beat the (YoY) expectation of 4.55 with a change of 5%, while the (MoM) equivalent missed 1.7% with 1.5%.
Elsewhere, both EU and German Markit Services PMIs and PMI Composite missed expectations while the Manufacturing PMIs came in better than expected. Traders will be looking forward to Germany’s industrial production data on Friday. On the other hand, the Swiss Consumer Price Index for July matched the expected (YoY) change of 0.7%. The (MoM) equivalent also came in line with expectations, declining by 0.1%.
EUR/CHF Technical Analysis (the 60-min Chart)
Technically, the EUR/CHF currency pair appears to be trading within a descending channel formation in the 60-min chart. The currency pair still remains pinned below the 100-hour moving average despite Thursday’s rebound.
The bulls will be looking to extend the rebound towards 1.0747 or higher to 1.0762. On the other hand, the bears will look to pounce for short-term profits at approximately 1.0717 or lower at 1.0700.
EUR/CHF Technical Analysis (the Daily Chart)
In the daily chart, the EUR/CHF currency pair appears to have recently plunged to trade at new 9-month lows. The pair has now slipped closer to the oversold conditions of the 14-day RSI. The pair remains several levels below the 100-day moving average.
Therefore, the bulls will be targeting long-term rebounds at about 1.0788 or higher at 1.0852. On the other hand, the bears will look to extend the current downward movement towards 1.0675 or lower to 1.0611.