EUR/CHF Bulls Target Rebound Profits to Trim Weekly Losses

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The EUR/CHF currency pair on Wednesday bounced off the trendline resistance at around 1.0744 to surge towards 1.0790 after EU Data. The currency pair continues to trade within a highly volatile rising wedge in the 60-min chart.

The pair is now pinned just below the 200-hour SMA while the 100-hour SMA is a few pips higher. This week’s pullback followed by today’s rebound keeps the currency pair within the normal trading zone 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 Wednesday, the EU retail sales for June beat the (YoY) expectation of -0.5% with 1.3%. However, the equivalent for the (MoM) estimate narrowly missed the expectation of 5.9% with a change of 5.7%.On the other hand, the Markit PMI Composite slightly beat 54.8 with 54.9 while the Markit Services PMI came short of 55.1 with 54.7.

Earlier in the week, the Markit Manufacturing PMI for July beat 51.1 with 51.8. On Tuesday, the EU Producer Price Index for June beat the (YoY) expectation of -3.9 with -3.7. On the other hand, the (MoM) equivalent outperformed 0.5% with 0.7%. In Switzerland, the CPI for July beat the (YoY) expectation of -1.3% with -0.9%. The (MoM) equivalent beat -0.4% with -0.2% while the SVME purchasing managers’ index for July missed 51 with 49.2.

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

Technically, the EUR/CHF currency pair appears to be trading within a highly volatile ascending wedge in the 60-min chart. This indicates a relatively short-term bullish bias in the market sentiment.

The bulls will be looking to cut this week’s losses by targeting rebound profits at around 1.0786 or higher at 1.0815. On the other hand, the bears will look to target short-term profits at around 1.0744 or lower at 1.0713.

EUR/CHF Technical Analysis (the Daily Chart)

In the daily chart, the EUR/CHF currency pair appears to be trading within a highly volatile descending channel. This indicates a strong long-term bearish bias in the market sentiment. The pair has recently rebounded to surge towards overbought levels of the 14-day RSI.

The bulls will be looking to extend the current gains above the trendline resistance towards 1.0844 or higher at 1.0905. On the other hand, the bears will target long-term pullback profits at around 1.0688 or lower at 1.0605.

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