On Wednesday, the EUR/CHF currency pair bounced back from session lows around 0.9383 to trade at about 0.9298. The currency pair trades within a descending channel formation on the 60-minute chart.

The pair continues to trade several levels below the 100-hour moving average line, despite the rebound. As a result, the pair still has room to run before reaching the 14-hour RSI overbought levels.

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, the preliminary German HCOB composite PMI for September improved to 53.8, up from the previous month’s equivalent of 51.8. 

On the other hand, the preliminary HCOB Manufacturing PMI for the month fell to 53.8, down from 54.3, missing the forecast reading of 54.5, while the preliminary HCOB Services PMI for the period rose to 52.9, up from 49.7, beating the forecast of 50. 

Elsewhere, the preliminary EU HCOB Composite PMI for September outperformed the expectation of 51.5, with a reading of 53.1, up from 52 in August. On the other hand, the preliminary HCOB Manufacturing PMI for the month remained unchanged at 52.7, as expected. The preliminary HCOB Services PMI for the period rose to 53, up from 51.6 in the preceding month, beating the forecast reading of 51.7. 

Earlier in the week, the preliminary EU consumer confidence for September came in lower than expected, at 16.5 versus a forecast of -16, down from the previous month’s equivalent of -15.5.

Traders will be waiting for the Swiss National Bank’s interest rate decision and monetary policy statement on Thursday.

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

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

Therefore, the bulls will look to pounce on extended rebounds at about 0.9409 or higher, at 0.9423. On the other hand, the bears will look to pounce on profits at about 0.9383 or lower, at 0.9369.

EUR/CHF Technical Analysis (the Daily Chart)

In the daily chart, the EUR/CHF currency pair trades within an ascending channel formation. However, the 14-day RSI has recently pulled back to avoid rallying into overbought conditions.

Therefore, the bears will look to stretch the current pullback towards 0.9314 or lower, to 0.9238. On the other hand, the bulls will look to pounce on rebounds at about 0.9475 or higher, up to 0.9548.