The EUR/CHF currency pair on Wednesday extended declines toward 0.9750 following the latest round of German data. The currency pair appears to be trading within a consolidative triangle formation in the 60-min chart.

The pair continues to trade several levels above the 100-hour moving average line despite the pullback. However, it seems to be moving closer to the oversold 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 German market. On Wednesday, Germany’s wholesale price index for May missed the expected (MoM) change of -1% with a change of -1.1%. On the other hand, the (YoY) equivalent beat the forecasted change of -3.3% with a change of -2.6%. On Tuesday, Germany’s harmonised index of consumer prices for May matched both the (MoM) and (YoY) expectations of -0.2% and 6.3%, respectively.

Elsewhere, the ZEW survey currency situation for June missed the expectation of -40 with a reading of -56.5. On the other hand, the economic sentiment for June outperformed the expected reading of -13 with a reading of -8.5, while the non-seasonally adjusted current account balance for April beat the forecasted balance of 21.6 billion euros with a balance of 21.8 billion euros. The EU’s ZEW survey sentiment for June missed the expectation of -1.5 with a reading of -10.

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

Technically, the EUR/CHF currency pair seems to be trading within a consolidative triangle formation in the 60-min chart. This indicates a lack of a clear directional bias in the short-term market sentiment.

Therefore, the bears will be targeting potential downward breakouts at about 0.9740 or lower at 0.9722. On the other hand, the bulls will look to pounce on profits at about 0.9775 or higher at 0.9794.

EUR/CHF Technical Analysis (the Daily Chart)

In the daily chart, the EUR/CHF currency pair appears to have recently completed an upward breakout from a descending channel formation. This indicates a significant change in the market sentiment from bearish to bullish.

Therefore, the bulls will be looking to extend the current rebound towards 0.9832 or higher to 0.9920. On the other hand, the bears will look to pounce on profits at about 0.9684 or lower at 0.9585.