On Thursday, the EUR/CHF currency pair bounced from the session lows of about 0.9310 to trade at a new week high of 0.9336 before pulling back to 0.9324. The currency pair trades within an ascending channel formation in the 60-minute chart.

The pair continues to trade a few levels above the 100-hour moving average line, despite the pullback. Thursday’s pullback prevented the pair from ascending into the overbought 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 Thursday, the EU’s harmonised index of consumer prices for June matched the (MoM) expectation of 0.3%, unchanged from the previous month.

The core harmonised index of consumer prices for the period was also steady at 0.4%, while the (YoY) equivalent was in line with the estimate of 2.3%, unchanged from the previous period. Traders will be looking forward to the German producer price index data for June on Friday.

Earlier in the week, Germany’s ZEW survey for the current situation in July outperformed the expectation of -65.5 with a reading of -59.5, up from -72 in June. On the other hand, the ZEW survey economic sentiment for the month improved to 52.7 from 47.5 in the preceding month, beating the forecast of 50.

Elsewhere, the EU’s ZEW survey economic sentiment for July missed the expectation of 37.8 with a reading of 36.1, up from 35.3 in June. The EU’s seasonally adjusted industrial production for May exceeded the expectation of 0.9% with a change of 1.7% (MoM).

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

Technically, the EUR/CHF currency pair trades within an ascending channel formation in the 60-minute chart. However, the 14-hour RSI has recently pulled back to avoid rallying into overbought conditions.

Therefore, the bears will look to stretch the current pullback towards 0.9310 or lower to 0.9296. On the other hand, the bulls will look to pounce on rebounds at about 0.9336 or higher at 0.9350.

EUR/CHF Technical Analysis (the Daily Chart)

In the daily chart, the EUR/CHF currency pair trades within a descending channel formation. However, the 14-day RSI has recently bounced back to avoid falling into oversold conditions.

Therefore, the bulls will look to extend the current rebound towards 0.9382 or higher to 0.9433. On the other hand, the bears will look to pounce on profits at about 0.9270 or lower at 0.9216.