The EUR/CHF currency pair on Friday extended declines to new 3-month lows after the ECB’s interest rate decision. The currency pair continues to trade within a sharply falling trend formation in the 60-min chart.
The pair remains below the 100-hour moving average after Friday’s pullback. It moved closer to the oversold levels of the 14-hour RSI before mounting a late rebound to avoid sleeping further.
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. As the G7 meeting continues, the EU released some key economic data during the week. On Thursday, the European Central Bank decided to keep the base interest rate unchanged at 0.0%. The deposit rate also remained pinned at -0.5% in line with expectations. Earlier in the week, the EU’s gross domestic product for Q1 beat the expectation of -0.6% with a (QoQ) change of -0.3%. Annualized GDP for the quarter outperformed -1.8% with -1.3%.
Germany’s industrial production for April missed the (MoM) expectation of 0.7% with -1% while factory orders came short of 1% with -0.2%. The ZEW Survey’s current situation for June for the country beat expectations while economic sentiment came short. In Switzerland, the unemployment rate fell to 3.0% compared to the previous rate of 3.2%.
EUR/CHF Technical Analysis (the 60-min Chart)
Technically, the EUR/CHF currency pair appears to be trading within a descending trend formation in the 60-min chart. This indicates a strong short-term bearish bias in the market sentiment. The pair has moved closer to oversold levels of the 14-hour RSI.
The bears will be looking to extend the current declines towards 1.0873 or lower to 1.0861. On the other hand, the bulls will look to pounce for profits at around 1.0899 or higher at 1.0910.
EUR/CHF Technical Analysis (the Daily Chart)
In the daily chart, the EUR/CHF currency pair appears to be trading within a descending channel formation. This indicates a slight long-term bearish bias in the market sentiment. The pair is closer to crossing to the oversold levels of the 14-day RSI.
The bulls will be targeting long-term rebound profits at around 1.0920 or higher at 1.0962. On the other hand, the bears will look to ride the current trend by targeting profits at around 1.0840 or lower at 1.0787.