The EUR/CHF currency pair rebounded on Tuesday to trade at around 1.0890 as it continues to flirt with the 1.0900 key level. The currency pair had pulled back on Friday last week to bottom at around 1.0840 before yesterday’s rebound which took it to 1.0903.

However, the pullback in the afternoon trading session on Monday took the pair down to around 1.0860, but it has now rebounded to challenge yesterday’s highs of 1.0900. The pair continues to trade in a slightly bullish channel that is becoming more volatile after a short period of sideways movement.

EUR/CHF Fundamentals Overview

From a fundamental perspective, the EUR/CHF currency pair is trading at the back of the latest German GDP data and French Consumer Confidence and Business Climate. 

On Tuesday, the German Gross Domestic Product for Q2, 2019 came in at 0.0% (YoY) in line with expectations. The (QoQ) equivalent was -0.1% also in line with expectations. Both figures were unchanged from the previous period.

And in France, the Consumer Confidence Index for August came in at 102 points the same as the previous period but better than the expectation of 101 points. Business Climate improved from 101 points in the previous period to 102 points, in the process beating expectations of 101 points.

Trade tensions and Brexit are still key elements of the dynamics of the EUR/CHF currency pair and continue to play a part, however, things are cooling off a bit, but the long-term future is relatively uncertain on both issues.

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

Technically, the EUR/CHF currency pair appears to be trading in a widening bullish wedge, which shows a relative increase in volatility. The currency pair recently bounced off the trendline support at around 1.0860 and now looks headed for the key level at 1.0900.

Therefore, the bulls will be targeting profits at around 1.0900 or higher at 1.0920. On the other hand, the bears will hope for an immediate pullback towards 1.0872, 1.0853 or lower at 1.0836 going into Wednesday.

EUR/CHF Technical Analysis (the Daily Chart)

In the daily chart, the EUR/CHF currency pair appears to be trading under intense bearish pressure. The pair has been trading within a descending channel, which dates back to April last year and this could carry on through the end of this year.

This creates some interesting long-term trading opportunities. The bulls will be looking to pounce on all rebounds and short-term trend reversals while the bears will look to maintain control. The bulls can target profits at around 1.0957, 1.1070 or higher at 1.1162. On the other hand, the bears will target long-term profits at 1.0797, 1.0718, or lower at 1.0645.

In summary, the EUR/CHF currency pair appears to be going through a short-term consolidative movement but the bears retain control in the long-term.