EUR/CHF Extends Declines Toward Weekly Lows After Pullback

The EUR/CHF currency pair on Friday extended declines towards the current weekly lows of about 0.9466 after the last EU data. The currency pair continues to trade within a descending channel formation in the 60-min chart.

The currency pair has now fallen to trade several levels below the 100-hour moving average line. As a result, the pair has moved closer to the oversold levels of the 14-hour RSI. This could spark a short-term rebound.

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 preliminary EU S&P Global Composite PMI for September matched the expectation of 48.2. On the other hand, the preliminary manufacturing and services PMIs missed 48.7 and 49, respectively with 48.5 and 48.9.  On the other hand, Germany’s S&P Global/BME Composite PMI for September missed the forecast of 46 with 45.9, while the Services PMI of 45.4 fell short of the estimate of 47.2. The Manufacturing equivalent was in line with expectations at 48.3.

In Switzerland, the Swiss National Bank on Thursday raised the base interest rate by 75 basis points to 0.5% up from -0.25% in line with expectations. Earlier in the week, Swiss exports for August edged higher to 20.942 million up from -22,242 million, while imports increased to 17,519 from -18,720. However, the trade balance for Áugust missed the expectation of 3,717 million with 3,424 million.

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

Technically, the EUR/CHF 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 extend the current streak of declines toward 0.9466 or lower to 0.9417. On the other hand, the bulls will be targeting potential rebounds at about 0.9566 or higher at 0.9618.

EUR/CHF Technical Analysis (the Daily Chart)

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

Therefore, the bulls will be targeting potential reversals at about 0.9722 or higher at 0.9953. On the other hand, the bears will be targeting long-term profits at about 0.9311 or lower at 0.9094.

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