The EUR/CHF currency pair on Wednesday bounced off the key support at about 0.9748 to retest session highs of about 0.9773. The currency pair continues to trade within an ascending channel formation in the 60-minute chart.

The pair has now advanced to trade several levels above the 100-hour moving average line. As a result, the currency pair is on the verge of entering the overbought 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 Wednesday, Germany’s IFO business climate for April beat the expected reading of 88.9 with a reading of 89.4. The IFO for the current assessment for the period also outshone the estimate of 88.7 with 88.9, while the IFO expectations beat 88.9 with a reading of 89.9.

Earlier in the week, Germany’s preliminary HCOB composite PMI for April beat the expectation of 48.6 with a reading of 50.5, while the manufacturing PMI for the period fell short of 42.8 with 42.2. Elsewhere, the preliminary HCOB services PMI for the period exceeded the forecasted reading of 50.6 with a reading of 53.3.

In the EU, the preliminary HCOB composite PMI also beat 50.8 with 51.4, while the Manufacturing PMI missed 46.5 with a reading of 45.6. The preliminary EU’s HCOB Services PMI beat 51.8 with a reading of 52.9. Earlier in the week, the EU’s preliminary consumer confidence for April missed the expectation of -14 with a reading of -14.7.

In Switzerland, the ZEW survey expectations for April improved to 17.6, up from 11.5 in the previous period.

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

Technically, the EUR/CHF currency pair appears to be trading within an ascending channel formation in the 60-minute chart. The 14-hour RSI also seems to support a bullish bias as it edges closer to overbought conditions.

Therefore, the bulls will be targeting extended gains at about 0.9785 or higher at 0.9797. On the other hand, the bears will look to pounce on pullbacks at about 0.9760 or lower at 0.9748.

EUR/CHF Technical Analysis (the Daily Chart)

In the daily chart, the EUR/CHF currency pair appears to have recently completed an upward breakout from descending channel formation. The 14-day RSI has also bounced back to avoid falling further towards oversold conditions.

Therefore, the bulls will be targeting extended rebounds at about 0.9813 or higher at 0.9849. On the other hand, the bears will look to pounce on profits at about 0.9730 or lower at 0.9691.