On Wednesday, the EUR/CHF currency pair bounced from the session lows of about 0.9159 to trade at about 0.9176. The currency pair trades within a descending channel formation in the 60-minute chart.

The pair continues to trade slightly below the 100-hour moving average line, despite the latest rebound. As a result, the currency pair still has some room left to run before reaching 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 Tuesday, Germany’s ZEW survey for the current situation in April missed the expectation of -70, with a reading of -73.7, down from the previous month’s equivalent of -62.9. The ZEW survey economic sentiment for the period also missed the expected reading of -5, with -17.2, down from -0.5 in March. 

On the other hand, the EU’s ZEW survey economic sentiment for April fell to -20.4, down from the previous month’s equivalent of -8.5, missing the forecasted reading of -3.6.

Earlier in the week, Germany’s producer price index for March outperformed the expected (MoM) change of 1.4%, with a change of 2.5%. Looking forward, traders will be waiting for Germany’s preliminary HCOB Composite, Manufacturing, and Services PMIs for April on Thursday morning, ahead of the EU’s equivalents for the period later in the day. 

Traders will also be waiting for the Swiss National Bank’s interest rate decision on Friday, as well as Germany’s IFO business climate, IFO current assessment, and IFO expectations for April.

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 still has room left to run before reaching overbought conditions.

Therefore, the bulls will look to pounce on extended rebounds at about 0.9193 or higher at 0.9207. On the other hand, the bears will look to pounce on profits at about 0.9159 or lower at 0.9144.

EUR/CHF Technical Analysis (the Daily Chart)

In the daily chart, the EUR/CHF currency pair has recently completed a downward breakout from an ascending channel formation. The 14-day RSI has also pulled back to avoid rallying into overbought conditions.

Therefore, the bears will look to stretch the latest pullback towards 0.9076 or lower to 0.8984. On the other hand, the bulls will look to pounce on profits at about 0.9268 or higher at 0.9364.