The EUR/CHF currency pair has completed a major recovery following the massive plunge towards the end of last month. Until now, the whole of April has been about one thing, a journey back to the place the pair traded before embarking on a sharp decline on March 20, 2019.

And now, having returned to that fictitious trading range of about 1.1300 to 1.1400, the pair now appears to be likely to oscillate within this range in a mirror image to the period before the decline.

EUR/CHF Fundamentals Overview

From a fundamental perspective, the EUR/CHF currency pair’s recent rebound has been attributed to the views of the ECB that the Eurozone economy will rebound in the second half of the year. There have been some promising economic numbers from the top EU bloc members led by Germany, France, and Spain, which have presumably backed this claim.

However, after a report emerged on Tuesday suggesting that the expected rebound in the second half of the year could be a pipe dream as expressed by some ECB members, this is likely to put some breaks on the surge of the EUR/USD currency pair thus triggering a range-bound movement. Meanwhile, an earlier report indicated that the German ZEW Economic Sentiment beat expectations with 3.1 points.

EUR/CHF Technical Analysis (the 240-min Chart)

Technically, the EUR/CHF currency pair appears to have turned to a previous trading range, which could restrain it from advancing further. ANy pullbacks could also be limited to around the 1.1300 level as demonstrated on the 240-min chart.

As such, the bulls will target opportunities at around the 1.1385 level given the current level of 1.1370 while the bears will hope for an unlikely pullback by targeting profits at around the 1.1340 level or further down at 1.1307.

EUR/CHF Technical Analysis (the Daily Chart)

In the daily chart, appears to be trading within the 50% and the 38.20% Fib levels, which could provide crucial support and resistance in the short-term. The bulls will look to target opportunities just below the 38.20% Fib level while the bears will aim for the 50% Fib level.

The pair also seems to be tightly locked between 50-Day and the 100-Day/200-Day moving averages, which again provides a basis for short-term trading.

In summary, the EUR/CHF currency pair appears to be approaching a major resistance zone following its recent resurgence. And while there is still some room left up top, the bears will also be expecting a pullback soon.