On Thursday, the EUR/CHF currency pair pulled back from the session highs of about 0.9431 to trade at about 0.9404. The currency pair trades within a descending channel formation in the 60-minute chart.

The pair has now plummeted to trade slightly below the 100-hour moving average line. However, the currency pair still has some room left to run before reaching the oversold levels of the 14-hour RSI.

EUR/CHF Fundamentals Overview

From a fundamental perspective, the EUR/CHF currency pair trades during a relatively busy period in the EU market. On Thursday, the preliminary EU gross domestic product for Q2 matched the forecasted seasonally-adjusted (QoQ) and (YoY) changes of 0.1% (QoQ) and 1.4%, respectively. The preliminary employment change for the quarter was also in line with the (QoQ) forecast of 0.1%.

On the other hand, the seasonally adjusted industrial production for June missed the expected (MoM) change of -1% with a change of -1.3%.  The ZEW survey for economic sentiment in August also fell short of 28.1, with a reading of 25.1.

Elsewhere, Germany’s harmonised index of consumer prices for July matched the (MoM) and (YoY) forecasts of 0.4% and 1.8%, respectively. Germany’s ZEW survey economic sentiment for August fell short of 40, with a reading of 34.7, while the ZEW Survey for the current situation missed the expectation of -65 with a reading of -68.6.

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

Technically, the EUR/CHF currency pair trades within a descending channel formation in the 60-minute chart. However, the 14-hour RSI still has room left to run before reaching oversold conditions.

Therefore, the bears will look to stretch the current pullback towards 0.9388 or lower to 0.9372. On the other hand, the bulls will look to pounce on rebounds at about 0.9421 or higher at 0.9437.

EUR/CHF Technical Analysis (the Daily Chart)

In the daily chart, the EUR/CHF currency pair trades within an ascending channel formation. However, the 14-day RSI has recently pulled back to avoid rallying into overbought conditions.

Therefore, the bears will look to stretch the current pullback towards 0.9331 or lower to 0.9262. On the other hand, the bulls will look to ride the current rally towards 0.9472 or higher to 0.9533.