The EUR/CHF currency pair appears to be consolidating in a sideways movement at around 1.0860 as doubts about whether the German stimulus package would be enough, begin to develop. The currency pair appears to be struggling to mount a serious recovery campaign after the massive decline experienced at the start of the month.

In general terms, the EUR/CHF currency pair continues to trade within a relatively bearish wedge as it challenges the 1.0832 support level. The 100-hour MA line is slightly above the current level of the pair while the 200-hour MA line is a few pips higher.

EUR/CHF Fundamentals Overview

From a fundamental perspective, the EUR/CHF currency pair is trading at the back of several key economic data from both the EU and Switzerland. On Monday, the seasonally adjusted EU current account showed a balance of 18.4 billion Euros down from 30.2 billion Euros in the previous period. 

The Consumer Price Index data also missed estimates on all counts except for the year-over-year core data which was in line with expectations at 0.9% down from 1.1% from the previous period.

And on Tuesday’ Switzerland’s Exports and Imports data from July improved from the previous period with 21,858M and 18,227M respectively, up from 20,453M and 16,446M. However, the Swiss Trade Balance declined from 4,007M to 3,631M.

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

Technically, the EUR/CHF currency pair appears to have recently bounced off the borderline between the normal trading zone and oversold levels. It is now pegged in the middle of the indicator, which suggests that the current trend could continue through Friday unless a major economic event turns the tide.

Therefore, the bulls will be targeting profits at around 1.0873 or high 1.0900 in the short-term while the bears will look to pounce at around 1.0848 or lower at 1.0832.

EUR/CHF Technical Analysis (the Daily Chart)

In the daily chart, the EUR/CHF currency pair appears to be trading within a downward trending channel, which again illustrates a bearish bias in market sentiment towards the pair. The pair is currently just a few pips off the trendline support and continues to challenge the oversold borderline.

This will give the bears more optimism going into mid-week and they will target long-term profits at around 1.0793, 1.0718 and 1.0635. On the other hand, the bulls will hope for a trend reversal as they target profits at around 1.0900, 1.0970 and 1.1071.

In summary, the EUR/USD currency pair appears to be experiencing strong bearish pressure, both in the short-term and the long-term but the bulls will be looking for any rebounds that crop up.