The EUR/CHF currency pair has fallen below the key level at 1.0560 after the ECB decided to keep the deposit rate and interest rates unchanged. The currency pair has been on a downward movement since the start of the month and this week failed to build on an attempted recovery.

The currency pair now appears to edge closer to oversold levels of the RSI indicator, which could trigger another short-term rebound amid bearish bias.

EUR/CHF Fundamentals Overview

From a fundamental perspective, the EUR/CHF currency pair is trading at the back of a busy period in the EU market. The coronavirus menace continues to cause chaos across the world forcing several businesses to halt events. Sports have been postponed across major leagues in the world and oil prices have continued to plunge. It looks more likely that the coronavirus will cause a financial crisis of not handled.

In terms of economic data, the EU employment change for Q4 beat the (YoY) expectation of 1% with 1.1%. The GDP outperformed the (YoY) estimate of 0.9% with 1% while (QoQ) data was in line with 0.1%. Industrial production for January beats the (MoM) expectation of 1.4% with 2.3%. And finally, the most significant event of the day saw the ECB hold interest rates at 0.0% while the deposit rate was kept unchanged at -0.5%.

In Switzerland, the unemployment rate for February was in line with expectations at 2.3%, the same as the previous period.

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

Technically, the EUR/CHF currency pair appears to be trading under considerable bearish pressure. The 100-hour SMA recently crossed under the 200-hour SMA, which illustrates a short-term bearish bias in the market sentiment. It is now close to crossing to oversold levels of the RSI.

Therefore, the bears will be targeting short-term profits at around 1.0525 or lower at 1.0500. On the other hand, the bulls will look to pounce on rebound profits at around 1.0577 or higher at 1.0607.

EUR/CHF Technical Analysis (the Daily Chart)

In the daily chart, the EUR/CHF currency pair appears to be experiencing a long-term bearish bias in the market sentiment. An attempted recovery in the final four months of last year proofed to be unsustainable. Since then, the bears have taken full control.

Therefore, the bulls will be targeting long-term rebound profits at around 1.0701 or higher at 1.0846. On the other hand, the bears will look to retain control by targeting profits at around 1.0386 or lower at 1.0243.