The EUR/CHF currency pair on Wednesday failed to build on the early morning session gains beyond 1.0627 amid a lack of upward momentum. The currency pair had earlier bounced off new multi-year lows of about 1.0605 despite trading at 1.0650 at the start of the week.

The currency pair has been trading within a descending channel over the last two weeks. This indicates a short-term bearish bias on the market sentiment. Both the 100-hour and the 200-hour SMA lines are above the current level of the pair. This further supports bearish control.

EUR/CHF Fundamentals Overview

From a fundamental perspective, the currency pair is trading ahead of a relatively busy period in the Eu market. The EU PMIs data for January is expected to come out tomorrow, which will be hot on the heels of German data. On Tuesday, the German ZEW survey on the current situation for February missed the expectation of -10.3 with -15.7. The economic sentiment also disappointed with 8.7 versus the expectation of 21.5.

On the other hand, the economic sentiment for February on the overall EU block missed the expectation of 30 with 10.4. And on Wednesday, the EU current account balance for December beat the expectation of EUR 42.4B with EUR 51.2B n.s.a. However, the seasonally adjusted equivalent missed EUR 36.4 billion with EUR 32.6 billion. On the other hand, construction spending w.d.a for December missed the expected (YoY) change of 1.4% with -3.7%.

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

Technically, the EUR/CHF currency pair appears to be trading in a gently sloping wedge amid increased short-term selling pressure. This indicates a short-term bearish bias in the market sentiment. The pair is pegged centrally in the RSI indicator in the 60-min chart. This suggests that the current downward movement could continue through Friday.

Therefore, the bears will be targeting short-term profits at around  1.0605 or lower at 1.0585. On the other hand, the bulls will look to pounce on potential rebound profits at around 1.0627 or higher at 1.0639.

EUR/CHF Technical Analysis (the Daily Chart)

In the daily chart, the EUR/CHF currency pair appears to be experiencing intense bearish pressure in the market sentiment. The pair continues to trade close to the oversold levels of the RSI indicator in the daily chart. This could trigger the next rebound with bears looking to take profits.

Therefore, the bulls will target long-term rebound profits at around 1.0673 or higher at 1.0765. On the other hand, the bears will hope to retain control of the pair by targeting profits at around 1.0537 or lower at 1.0463.