EUR/CHF Holds Firm Above 1.0950 After Channel Breakout

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The EUR/CHF currency pair is holding firm above 1.0950 after breaking through the trendline resistance of the current sideways channel. 

The currency pair surged above the resistance level of the channel at 1.0915 on Monday and has stayed above this level since then, most recently bouncing off the level, which has now turned into key support.

The breakout happened as the pair traded within a sharply rising channel that follows a sequence fo two previous channels that failed to make the breakthrough.

EUR/CHF Fundamentals Overview

From a fundamental perspective, the EUR/CHF currency pair is trading ahead of what could be a decisive event tomorrow when the ECB holds a meeting on interest rate decision. Thursday will also see major economic reports come out including the EU industrial production for July.

These reports will be following what has been a rather mixed week in terms of the EU economic data. Earlier in the week, German Trade Balance and Exports beat expectations, but imports came short of what the market anticipated.

The EU Sentix Investor Confidence also impressed with -11.1 as compared to an expectation of -14.0 while both the French and Italian Industrial Output missed expectations.

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

Technically, the EUR/CHF currency pair appears to be trading within a sharply rising channel, which indicates a short-term bullish bias. The currency pair is also enjoying strong support around the 1.0915 level after breaching through at the start of the week.

Given the position of the RSI indicator in the 60-min chart, the pair looks set to continue trading in the ascending channel through Friday unless something major changes the fundamental perspective. 

Therefore, the bulls will target short-term profits at around 1.0977 and 1.1000 while the bears will look to pounce at around 1.0939 and 1.0915.

EUR/CHF Technical Analysis (the Daily Chart)

In the daily chart, the EUR/CHF currency pair still appears to be under strong bearish pressure despite the recent rebound, which came following the completion of the three drivers bearish wave pattern.

Therefore, the bears will be targeting long-term profits at around 1.0877, 1.0806 and 1.0745 while the bulls will look to pounce at around 1.1053 and 1.1168.

In summary, the EUR/CHF currency pair appears to be experiencing a strong short-term bullish pressure but in the long-term, the bears appear to be firmly in control.

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