The EUR/CHF currency pair on Thursday bounced off the current weekly lows to trade at around 1.0778 following Wednesday’s plunge. The currency pair plunged on Wednesday to trade at around 1.0750 after a disappointing round of German retail sales.

The pair continues to trade within a sideways channel in the 60-min chart. It is currently pinned just below the 200-hour SMA while the 100-hour SMA is a few pips higher. It continues to trade closer to oversold levels of the 14-hour RSI.

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 Wednesday, German retail sales for August missed the (YoY) expectation of 4.25 with a change of 3.7%. On the other hand, the (MoM) change in August retail sales beat the expectation of 0.5% with 3.1%. The seasonally-adjusted German unemployment rate for September eased to 6.3% down from 6.4% in the previous period. Analysts were expecting a rate of 6.4%.

Earlier in the week, Germany’s preliminary harmonized index for consumer prices for September missed the expectation of -0.1% with -0.4%. The preliminary CPI for September also came short of both the (MoM) and (YoY) expectations. On Thursday’Germany’s Markit Manufacturing PMI for September missed the expectation of 56.6 with 56.4.

In Switzerland, the KOF leading indicator for September outperformed the expectation of 106 with 113.8. The ZEW survey— expectations for September came short of 43.4 with 26.2.

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

Technically, the EUR/CHF currency pair appears to be trading within a sideways channel in the 60-min chart. The pair is now pinned just below the 200-hour SMA following Thursday’s rebound. However, it remains very close to oversold levels of the 14-hour RSI.

The bulls will look to build on the current rebound by targeting short-term profits at around 1.0805or higher at 1.0833. On the other hand, the bears will look to pounce for profits at around 1.0750 or lower at 1.0720.

EUR/CHF Technical Analysis (the Daily Chart)

In the daily chart, the EUR/CHF currency pair appears to be trading within an ascending wedge. This comes off a descending channel that dates back to the start of 2018. It indicates an attempt by the bulls to trigger a trend reversal.

They will be targeting long-term profits at around 1.0898 or higher at 1.1045. On the other hand, the bears will look to retake control of the pair by targeting profits at around 1.0660 or lower at 1.0517.