The EUR/CHF currency pair on Wednesday pulled back off the trendline support at about 0.9870 to trade below 0.9850. The currency pair continues to trade within a descending channel formation in the 60-min chart.
The currency pair has now fallen to trade a few levels below the 100-hour moving average line. As a result, the pair 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 EU market. On Wednesday, Germany’s 30-year bind rate increased to 2.33% up from the previous update’s equivalent of 2.32%.
On Tuesday, the EU retail sales for March outperformed the expected (YoY) change of -3.5% with a change of -3%. The (MoM) equivalent was in line with the forecasted change of -0.8%. The Sentix Investor Confidence for April beat the expected reading of -9.9 with a reading of -8.7.
Looking forward, traders will be waiting for Germany’s harmonised index for consumer prices on Thursday, with both the (MoM) and (YoY) figures expected to post similar changes to the previous month. The EU economic zone will also be releasing industrial production data for February, while the Swiss will look forward to Friday’s producer and import prices for March.
EUR/CHF Technical Analysis (the 60-min Chart)
Technically, the EUR/CHF currency pair appears 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 stretch the current run of declines toward 0.9834 or lower to 0.9818. On the other hand, the bulls will look to pounce on rebounds at about 0.9863 or higher at 0.9879.
EUR/CHF Technical Analysis (the Daily Chart)
In the daily chart, the EUR/CHF currency pair appeared to be trading within a descending channel formation. This also indicates significant long-term bearish bias in the market sentiment.
Therefore, the bears will be targeting long-term profits at about 0.9799 or lower at 0.9738. On the other hand, the bulls will look to pounce on profits at about 0.9906 or higher at 0.9967.