The EUR/CHF currency pair on Thursday extended mid-week gains towards 0.9780 after pulling back earlier in the week. The currency pair appears to be trading within an ascending channel formation in the 60-min chart.
The pair has now rallied to trade closer to the 100-hour moving average line. As a result, the currency pair seems to be moving towards the overbought levels 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, Germany’s harmonised index of consumer prices for April matched the expected (YoY) change of 7.6%. The (MoM) equivalent was also in line with the forecast of 0.6%. The general consumer price index for the period met the expectation of 0.4% (MoM) and 7.4% (YoY).
Earlier in the week, the EU Sentix Investor Sentiment for May missed the expected reading of -8 with a reading of -13.1. The German industrial production for March came short of the expected change of -1% with a change of -3.4% (MoM), while the (YoY) equivalent outperformed the estimate of -0.5% with a change of 1.8%. Looking forward, traders will be waiting for key speeches from the ECB’s Schnabel and De Guindos on Thursday.
EUR/CHF Technical Analysis (the 60-min Chart)
Technically, the EUR/CHF currency pair appears to be trading within an ascending channel formation in the 60-min chart. This indicates a significant short-term bullish bias in the market sentiment.
Therefore, the bulls will be looking to extend the current run of gains toward 0.9777 or higher to 0.9785. On the other hand, the bears will be targeting pullback profits at about 0.9761 or lower at 0.9753.
EUR/CHF Technical Analysis (the Daily Chart)
In the daily chart, the EUR/CHF currency pair appears to be trading within a descending channel formation. This indicates a significant long-term bearish bias in the market sentiment.
Therefore, the bears will be targeting long-term profits at about 0.9738 or lower at 0.9704. On the other hand, the bulls will look to pounce on profits at about 0.9808 or higher at 0.9845.