The EUR/CHF currency pair is trading higher today following its most recent rebound. The pair pulled back on Monday to refresh current weekly lows at around 1.1130 but it has since rallied to set a new 2-week high of 1.1168.

The currency pair maintains a short-term bullish outlook after performing a trend reversal early last week, which started after bottoming at around 1.1060. The current rally in the pair also follows news that the ECB could reportedly keep rates unchanged in July.

EUR/CHF Fundamentals Overview

From a fundamental perspective, the EUR/CHF currency pair is trading at the back of a key inflation report from the EU. Based on the latest monthly report for June, the Eurozone Producer Price Index (PPI)  increased by 1.6% on a year over year basis, missing expectations of 1.7%. 

The rate for the same period last year was 2.6%. Nonetheless, the EU PPI did manage to meet expectations on the month over month growth with -0.1%, which was also a significant improvement from the previous period’s rate of -0.3%.

On the other hand, the Swiss National Bank (SNB) has maintained its stance on being ready to intervene in the FX market as the need arises. In the most recent rate statement, the SNB maintained the deposit rate at -0.75 as it maintains caution under current economic conditions. 

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

From a technical viewpoint, the EUR/CHF currency pair appears to have recently performed a trend reversal from a bearish channel to a bullish channel. The pair is currently trading well above its 100-hour and 200-hour moving average levels. 

It also appears to be nearing overbought levels in the Relative Strength Index Indicator. This creates interesting trading opportunities for the bulls and the bears. The bulls will target profits at around 1.1203 while the bears will look to pounce by targeting profits at 1.1130.

EUR/CHF Technical Analysis (the Daily Chart)

In the daily chart, the EUR/CHF currency pair appears to have recently made a bearish breakout from a sideways channel that stretches back to August last year. However, following that breakout, the pair has since bounced off 2-year lows after the reversal demonstrated in the 60-min chart.

This suggests that while the bulls may have seized control, the pair is yet to recover fully from the bearish breakout. As such, it continues to experience a bearish bias in the intermediate, but the long-term outlook is still a battle.

In summary, the EUR/CHF currency pair is trading at the back of positive news regarding interest rates with the ECB reportedly expected to keep the base interest rate unchanged in July. The bulls will be excited but the pair is still under intense bearish pressure.