On Wednesday, the EUR/CHF currency pair bounced back from the session lows of about 0.9398 to trade at about 0.9424. The currency pair trades within an ascending channel formation on the 60-minute chart.

The pair has now advanced to trade a few levels above the 100-hour moving average line. However, 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 seasonally adjusted trade balance for July increased to EUR 21.3 billion, up from EUR 15.4 billion in June, beating the forecast of EUR 16 billion. On Monday, the country’s seasonally adjusted industrial production for July missed the expected (MoM) change of 0.3%, with a change of -1.1%. 

On the other hand, the EU economic bloc’s employment change for Q2 matched the (QoQ) expectation of 0.1%. The gross domestic product for the quarter outshone 0.4%, with a change of 0.6% (QoQ). The (YoY) equivalent also outshone the forecast of 1%, with a change of 1.2%.

Looking forward, traders will be waiting for Germany’s harmonized index of consumer prices data for August on Thursday morning, ahead of the European Central Bank’s interest rate decision later in the afternoon. Analysts expect the committee to keep the base rate unchanged at 2.65%, with the deposit rate also forecasted to remain steady at 2.5%.

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

Technically, the EUR/CHF currency pair trades within an ascending channel formation on the 60-minute chart. The 14-hour RSI has also bounced back to move closer to overbought conditions.

Therefore, the bulls will look to extend the current rally towards 0.9449 or higher, up to 0.9472. Meanwhile, bears will look to pounce on pullbacks to about 0.9398 or lower, down to 0.9374.

EUR/CHF Technical Analysis (the Daily Chart)

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

Therefore, the bulls will look to ride the current run of gains toward 0.9485 or higher, up to 0.9541. Meanwhile, bears will look to pounce on pullbacks to about 0.9368 or lower, down to 0.9311.