The EUR/CHF currency pair on Wednesday pulled back from the session highs of about 0.9770 to trade at about 0.9754. The currency pair is trading within a descending channel formation in the 60-minute chart.

The pair has now pulled back to trade slightly below the 100-hour moving average line. As a result, the currency pair appears to be moving closer to the oversold levels of the 4-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, the German industrial production for March beat the expected (MoM) forecast of -0.6% with a change of -0.4%.

On Tuesday, the EU retail sales for the period also exceeded expectations of 0.6% with a change of 0.8%. On the other hand, German factory orders for March missed the expectation of 0.5% with a change of -0.4% (MoM). The German trade balance for the period also fell short of 22.4 billion euros with a balance of 22.3 billion euros. 

Exports for the period outshone the forecasted (MoM) change of 0.4% with a change of 0.9%. Earlier in the week, Germany’s HCOB Composite PMI for April beat the estimate of 50.5 with a reading of 50.6, while the Services PMI for the period fell short of 53.3 with a reading of 53.2.

The EU’s HCOB composite and Services PMIs beat expectations of 51.4 and 52.9, respectively with 51.7 and 53.3. 

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

Technically, the EUR/CHF currency pair appears to be trading within a descending channel formation in the 60-minute chart. The 14-hour RSI has also pulled back to move closer to oversold conditions.

Therefore, the bears will be targeting extended pullbacks at about 0.9743 or lower at 0.9730. On the other hand, the bulls will look to pounce on rebounds at about 0.9767 or higher at 0.9779.

EUR/CHF Technical Analysis (the Daily Chart)

In the daily chart, the EUR/CHF currency pair appears to be trading within a sideways channel formation. However, the 14-day RSI has recently pulled back to avoid rallying into overbought conditions.

Therefore, the bears will be targeting profits at about 0.9679 or lower at 0.9594. On the other hand, the bulls will look to pounce on potential upward breaks at about 0.9839 or higher at 0.9916.