The EUR/CHF currency pair on Friday found support at the 100-hour moving average line after pulling back off current weekly highs. The currency pair also seems to have completed a downward breakout from an ascending channel formation in the 60-min chart.

Friday’s pullback pushed the currency pair off overbought conditions to the normal trading zone of the 14-hour RSI. However, there is still some room left to run before hitting oversold conditions.

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. On Friday, the EU producer price index for July beat the expected (MoM) change of 2.5% with a change of 4%. The (YoY) equivalent also outperformed 35.8% with a change of 37.9%. On the other hand, the seasonally-adjusted German Trade Balance for July beat 4.8 billion euros with 5.4 billion euros. Elsewhere, Germany’s imports for July missed the (MoM) forecast of 0.8% with a change of -1.5%, while exports beat -2.3% with a change of -2.1% (MoM).

In Switzerland, the employment level for Q2 beat the (QoQ) estimate of 5.274 million with 5.316 million. Earlier in the week, the Swiss real retail sales for July missed the (YoY) forecast of 3.3% with a change of 2.6%. On the other hand, the consumer price index for August beat on both the (MoM) and (YoY) basis, while the SVME purchasing managers’ index for the period missed 56.8 with 56.4.

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

Technically, the EUR/CHF currency pair seems to have recently completed a downward breakout from an ascending channel formation in the 60-min chart. This indicates a significant short-term bearish bias in the market sentiment.

Therefore, the bears will be looking to stretch the current pullback toward 0.9737 or lower to 0.9700. On the other hand, the bears will look to pounce on rebounds at about 0.9802, or higher at 0.9835.

EUR/CHF Technical Analysis (the Daily Chart)

In the daily chart, the EUR/CHF currency pair seems to have recently completed an upward breakout from a descending channel formation. This indicates an abrupt change in the market sentiment from bearish to bullish.

Therefore, the bulls will be looking to stretch the current gains toward 0.9866 or higher to 0.9954. On the other hand, the bears will be targeting long-term profits at about 0.9683 or lower at 0.9573.