EUR/CHF Bounces Off Trendline Support to Trade Above 0.9680

The EUR/CHF currency pair on Friday bounced off the trendline support at 0.9670 to trade above 0.9680 after the latest EU data. The currency pair appears to be trading within a descending channel formation in the 60-min chart.

The currency pair remains several levers below the 100-hour moving average line. Although the rebound helped the pair to trim session losses, it still remains closer to the oversold conditions of the 14-hour RSI.

EUR/CHF Fundamentals Overview

From a fundamental perspective, the EUR/CHF currency pair is trading at the back of a relatively busy period in the EU market. On Friday, the EU industrial production for June beat the expected (MoM) change of 0.2% with a change of 0.7%. On the other hand, the (YoY) equivalent outshone the expectation of 0.8% with 2.4%.

Earlier in the week, Germany’s Harmonised Index of Consumer Prices for July matched both the (MoM) and (YoY) expectations of 0.8% and 8.5%, respectively. The general CPI also outshone 0.9% (MoM) and 7.5% (YoY), while the EU’s Sensitive Investor Sentiment for August failed to match the forecasted reading of -24.7 with a reading of -25.2.

Elsewhere, the seasonally-adjusted Swiss unemployment rate of July matched the (MoM) ex[pectation of 2.2%.

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

Technically, the EUR/CH currency pair seems to be trading within a descending channel formation in the 60-min chart. This indicates a significant short-term bearish bias in the market sentiment.

Therefore, the bears will be looking to stretch the current declines toward 0.9670 or lower to 0.9657. On the other hand, the bulls will look to pounce for profits at about 0.9691, or higher at 0.9704.

EUR/CHF Technical Analysis (the Daily Chart)

In the daily chart, the EUR/CHF currency pair seems to be trading within a sharply descending channel formation. This indicates a strong long-term bearish bias in the market sentiment.

Therefore, the bulls will be targeting long-term profits at about 0.9737 or higher at 0.9801. On the other hand, the bears will look to extend the current bearish run toward 0.9624 or lower to 0.9560.

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