On Wednesday, the EUR/CHF currency pair bounced from the session lows of about 0.9376 to trade at about 0.9397. The currency pair trades within a descending channel formation in the 60-minute chart.

Wednesday’s rebound pushed the currency pair slightly above the 100-hour moving average line. As a result, the pair recovered from the oversold 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, German retail sales for November outperformed the expected (YoY) change of 1.9% with a change of 2.5%. The (MoM) equivalent missed the forecasted change of 0.5% with a change of -0.6%, while the factory orders for the period fell short of 0% with a change of -5.4% (MoM).

The EU’s consumer confidence data for December was in line with the estimate of -14.5, while the economic sentiment for the period missed the expectation of 95.6 with a reading of 93.7. Elsewhere, the producer price index for December beat the (MoM) and (YoY) expectations of 1.5% and -1.3%, respectively with 1.6% and -1.2%.

Earlier in the week, the Swiss consumer price index for December was in line with the estimates of 0.6% (YoY) and -0.1% (MoM). Germany’s preliminary consumer price index for December beat the forecasted (MoM) and (YoY) rates of 0.3% and 2.4%, respectively, with 0.4% and 2.6%, while the preliminary harmonised index of consumer prices outshone 0.5% (MoM) and 2.6% (YoY), with 0.7% and 2.8%, respectively.

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

Technically, the EUR/CHF currency pair trades within a descending channel formation in the 60-minute chart. However, the 14-hour RSI has recently bounced back to avoid falling into oversold conditions.

Therefore, the bulls will look to stretch the current rebound towards 0.9418 or higher to 0.9440. On the other hand, the bears will look to ride the current run of declines toward 0.9376 or lower to 0.9354.

EUR/CHF Technical Analysis (the Daily Chart)

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

Therefore, the bulls will look to ride the current rally towards 0.9448 or higher to 0.9501. On the other hand, the bears will look to pounce on pullbacks at about 0.9343 or lower at 0.9291.