The EUR/CHF currency pair on Friday extended the weekly gains to new 3-week highs of about 1.0835 following the latest round of EU data. The currency pair continues to trade within a gently rising wedge formation in the 60-min chart. 

The pair has now moved closer to the overbought levels of the 14-hour RSI. It remains slightly higher above the 100-hour SMA. The 200-hour SMA is a few levels below.

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 Thursday, the EU retail sales for December beat the expected (YoY) change of 0.3% with a change of 0.6%. The (MoM) equivalent outperformed 1.6% with 2%. The preliminary EU CPI for January outperformed the expected change of 0.9% with a change of 1.4%. The general CPI for the period also came out stronger than the expectation of 0.5% with 0.9%. The Markit PMI composite for January beat 47.5 with 47.8. 

Earlier in the week, the preliminary EU gross domestic product for Q4 outperformed the expected (QoQ) change of -1.2% with a change of -0.7%. The (YoY) equivalent also cam,e in stronger with a change of -5.1 versus the expected change of -5.4%. The unemployment rate for December remained unchanged from the previous figure of 8.3%, in line with expectations.

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

Technically, the EUR/CHF currency pair appears to be trading within a gently ascending wedge formation in the 60-min chart. This indicates a significant short-term bullish bias in the market sentiment. The pair remains very close to overbought levels of the 14-hour RSI. This could trigger a short-term pullback.

The bulls will be looking to extend the current gains towards 1.0843 or higher to 1.0867. On the other hand, the bears will look to pounce on short-term pullbacks at around 1.0800 or flower at 1.0775.

EUR/CHF Technical Analysis (the Daily Chart)

In the daily chart, the EUR/CHF currency pair appears to be trading within a rising wedge formation. The pair has now climbed to move close to the overbought section of the 14-day RSI. This indicates a long-term bullish bias in the market sentiment.

The bulls will be looking to ride the current bull-run by targeting profits at around 1.0900 or higher at 1.0985. On the other hand, the bears will target long-term pullbacks at around 1.0747 or lower at 1.0663.