EUR/CHF Bounces Off Key Support to Top 1.0764 Ahead of EU GDP

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The EUR/CHF currency pair on Thursday bounced off the trendline support at around 1.0744 to surge towards 1.0764 ahead of the EU GDP. The currency pair appears to be trading within a slightly descending consolidative wedge in the 60-min chart.

The pair is now pinned to the 100-hour SMA while the 200-hour SMA is a few levels higher. It continues to surge towards overbought levels of the 14-hour RSI following the rebound but there is still room to run.

EUR/CHF Fundamentals Overview

The EUR/CHF currency pair is trading at the back of a relatively busy period in the EU market. Earlier in the week, the Sentix Investor Index for August beat the expectation of -15.2 with -13.4. The ZEW survey economic sentiment also outperformed 59.9 with 64 while industrial production for July missed the (MoM) and (YoY) expectations of 10% and -11.5% with 9.1% and -12.3%, respectively. Germany’s harmonized index of consumer prices came in line with the (YoY) expectation of 0% for July on Thursday.

Going into Friday, traders will be looking forward to the EU Gross Domestic Product for Q2. Current estimates put the figures the same as the previous period at -12.1% (QoQ) and -15% (YoY). In Switzerland, the seasonally-adjusted employment rate for July missed the expectation of 3.1% with 3.3%. The Swiss producer and import prices for July will be coming out on Friday.

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

Technically, the EUR/CHF currency pair appears to be trading within a consolidative bearish wedge in the 60-min chart. This indicates a relative change in the market sentiment following an extended period of gains. The pair has since halted its advance towards the overbought level of the 14-hour RSI.

The bulls will be looking to build on Thursday’s rebound by targeting profits at around 1.0786 or higher at 1.0815. On the other hand, the bears will look to retain short-term control by targeting profits at around 1.0744 or lower at 1.0713.

EUR/CHF Technical Analysis (the Daily Chart)

In the daily chart, the EUR/CHF currency pair appears to be trading in a consolidative ascending wedge within a descending channel. This indicates an attempt by the bulls to seize control of the pair from the bears. The pair is close to crossing over to overbought levels of the 14-day RSI.

The bulls will look to build on the current gains by targeting profits at around 1.0877 or higher at 1.1000. On the other hand, the bears will target long-term profits at around 1.0625 or lower at 1.0509.

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