The EUR/CHF currency pair on Friday plunged to trade at around 1.0563 on the back of the release of yesterday’s latest round of EU PMIs. The plunge comes following a period of a continuous uptrend that saw the pair top 1.0650 earlier in the week.

The currency pair has now crossed below the 100-hour and the 200-hour SMA lines. It has also dropped into the oversold levels of the 60-min RSI. This could trigger the next rebound with the bears rushing for cover.

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. The coronavirus pandemic has left global financial markets paralyzed as lockdowns continue. The Euro, in particular, has been affected significantly with four of its largest economic member countries, Germany, Italy, Spain, and France being among the worst hit.

Based on the latest round of economic data, the EU preliminary Markit Manufacturing PMI for March beat the expectation of 39 with 44.8. On the other hand, the Markit Services PMI missed 39 with 28.4 while the PMI Composite came short of 38.8 with 31.4. 

Earlier in the week, the preliminary data for Consumer Confidence for March beat the expectation of -14.2 with -11.6. Meanwhile, the G20 meeting continues to take place as global economies meet to contemplate ways of dealing with the coronavirus pandemic.

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

Technically, the EUR/CHF currency pair appears to be trading under strong bearish pressure, which comes off the back of a major bull-run. The pair has now dropped to oversold levels of the 60-min chart. This could trigger the next rebound.

Therefore, the bulls will target short-term profits at around 1.0592, 1.0607 or higher at 1.0625. On the other hand, the bears will be looking to extend short-term declines towards 1.0556, 1.0539, or lower to 1.0524.

EUR/CHF Technical Analysis (the Daily Chart)

In the daily chart, the EUR/CHF currency pair appears to be experiencing a long-term bearish bias in the market sentiment. The pair continues to trade in a descending channel after bouncing off the trendline support.

The bulls will be targeting long-term rebound profits at around 1.0778, 1.0910 or higher at 1.1051. On the other hand, the bears will look to pounce for profits at around 1.0371 or lower at 1.0226.