The EUR/CHF currency pair on Wednesday extended the current weekly gains towards 1.0860 following this week’s rebound. The currency pair continues to trade within an ascending channel formation in the 60-min chart.

The currency pair has now surged above the 100-hour and the 200-hour SMA lines. It also appears to be approaching the overbought levels of the 14-hour RSI. This could trigger a temporary pullback in the short-term.

EUR/CHF Fundamentals Overview

From a fundamental perspective, the EUR/CHF currency pair is trading at the back of a relatively quiet period amid the festive season celebrations. On Wednesday, the Swiss KOF leading indicator for December beat the expected reading of 100.5 with 104.3. The ZEW survey on expectations also returned more positive data than expected with 46.8 versus 15.8.

From the perspective of the Euro, the preliminary Spanish HICP for December beat the expected (YoY) change of -0.7% with a change of -0.6%. The (MoM) equivalent was in line with expectations at 0.1%. Spain’s preliminary CPI for December came short of the (MoM) expectation of 0.3% with a change of 0.2%. The (YoY) equivalent beat the expected change of -0.7% with a change of -0.5%. Earlier in the week, Spain’s retail sales for November fell by 4.3% (YoY) versus the previous period’s decline of 3%. 

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

Technically, the EUR/CHF currency pair appears to be trading within an ascending channel formation in the 60-min chart. This indicates a significant short-term bullish bias in the market sentiment. The pair has now rallied closer to overbought levels of the 14-hour RSI.

The bulls will be looking to extend the current short-term gains towards 1.0870 or higher at 1.0892. On the other hand, the bears will target short-term pullback at around 1.0834 or lower at 1.0813.

EUR/CHF Technical Analysis (the Daily Chart)

In the daily chart, the EUR/CHF currency pair appears to have recently made a bullish breakout from a descending channel. This indicates an attempt by the bulls to trigger a market reversal. It is now pinned in an ascending channel formation just above the 100-day and the 200-day SMA lines.

The bulls will be looking to extend the current bull-run towards overbought levels of the 14-day RSI to 1.0930 or higher to 1.1032. On the other hand, the bears will look to pounce on long-term profits at around 1.0771 or lower at 1.0665.