The EUR/CHF currency pair on Friday found support around the 1.0650 level as it continued to trade within a descending triangle formation. The pair has been experiencing strong bearish pressure since peaking in the first week of June when it topped 1.0900. 

The pair has since dropped below the 100-hour and the 200-hour SMA lines in the 60-min chart. It continues to trade within the normal trading zone in the 14-hour RSI. This points towards a short-term rebound.

EUR/CHF Fundamentals Overview

From a fundamental perspective, the EUR/CHF currency pair is trading at the back of a relatively quiet period in both markets. On Tuesday, Germany’s harmonized index of consumer prices for May came in line with the (YoY) expectation of 0.5%. The ZEW survey for the current situation and economic sentiment for June beat expectations of -84 and 60 with -83.1 and 63.4, respectively. On Friday, the producer price index for May missed the (MoM) expectation of -0.3% with -0.4% while the (YoY) change of -2.2% was also worse than the expectation of -2.1%.

On Wednesday, the EU CPI for May matched expectations on all counts. However, the current account balance for April missed expectations on Friday. Earlier in the week, trade balance for May also came short of expectations while the labor cost for Q1 outperformed 2.3% with 3.4%. In Switzerland, the Swiss National Bank kept the base interest rate unchanged at -0.75% on Thursday.

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

Technically, the EUR/CHF currency pair appears to be trading within a consolidative bearish triangle in the 60-min chart. This indicates a short-term bearish bias in the market sentiment. The pair continues to trade below the 100-hour and the 200-hour SMA lines.

The bulls will be targeting short-term rebound profits at around 1.0722 or higher at 1.0793. On the other hand, the bears will look to pounce on short-term profits at around 1.0577 or lower at 1.0510.

EUR/CHF Technical Analysis (the Daily Chart)

In the daily chart, the EUR/CHF currency pair appears to have recently pulled back off the trendline resistance. The pair continues to trade within a descending channel. This indicates a long-term bearish bias in the market sentiment.

The bears will look to extend the current pullback towards 1.0503 or lower at 1.0406. On the other hand, the bulls will target long-term rebound profits at around 1.0787 or higher at 1.0897.