The EUR/CHF currency pair on Friday pulled back off session highs of about 1.0526 to trade at around 1.0513 after the latest EU Consumer Price Index data. The currency pair is trading within a descending channel amid increased selling pressure. This indicates a short-term bearish bias in the market sentiment.

Friday’s pullback has pushed the pair closer to the oversold levels of the 14-hour RSI in the 60-min chart. The pair also remains several pips below the 100-hour and 200-hour SMA lines.

EUR/CHF Fundamentals Overview

From a fundamental perspective, the EUR/CHF currency pair is trading at the back of a relatively quiet period in the EU market. On Wednesday, the French CPI for March missed the (MoM) expectation of 0.0% with -0.1%. The HICP for the same period beat 0.0% with 0.1%. The Spanish equivalents for the same economic measures came short of 0.1% and 0.2%, respectively with 0.0% and 0.1%. On the other hand, Italian CPI was in line with the expectation of 0.1%.

On Thursday, the German CPI also matched the (MoM) expectation of 0.1% for March. The EU Industrial production surprised the (MoM) Feb. estimate of -0.2% with -0.1%. On Friday, the EU CPI matched expectations on all counts with 0.5% (MoM), 0.7% (YoY) and 1.0% core (YoY). In Switzerland, the PPI for March improved with a change of -0.3% (MoM) up from -0.9% in the previous reading. Earlier in the week, the Swiss SECO consumer climate for Q2 worsened to -40 down from -7 previously.

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

Technically, the EUR/CHF currency pair appears to be trading in a descending channel. This indicates a relatively short-term bearish bias in the market sentiment. The pair has recently descendent towards the oversold levels of the 14-hour RSI in the 60-min chart. This could trigger a temporary rebound.

The bulls will be targeting rebound profits at around 1.0520 or slightly higher at 1.0526. On the other hand, the bulls will look to extend the current pullback towards 1.0508 or slightly lower at 1.0502.

EUR/CHF Technical Analysis (the Daily Chart)

In the daily chart, the EUR/CHF currency pair appears to be trading under considerable bearish pressure. The pair remains tightly pegged within a descending wedge that extends back to the start of 2018. It has recently dropped to touch the trendline support.

The bulls will be targeting long-term rebound profits at around 1.0682, 1.0841 or higher at 1.1058. On the other hand, the bears will look to pounce for profits at around 1.0345, 1.0164 or lower at 1.0000.