On Wednesday, the EUR/CHF currency pair pulled back from the session highs of about 0.9648 to trade at about 0.9603. The currency pair trades within a sideways channel formation in the 60-minute chart.
The currency pair continues to trade slightly above the 100-hour moving average line. Wednesday’s pullback prevented the pair from ascending into the overbought levels of the 14-hour RSI.
EUR/CHF Fundamentals Overview
From a fundamental perspective, the EUR/CHF currency pair trades during a relatively quiet period in the EU market. On Monday, Germany’s seasonally-adjusted industrial production for January exceeded expectations of 1.5% with a change of 2% (MoM), up from -1.5% in December. The (YoY) equivalent for the period also improved from -2.2% with a change of -1.6%.
The seasonally adjusted trade balance for January fell short of the forecasted balance of EUR 21B with a balance of EUR 16B, down from EUR 20.7B in December.
Looking forward, traders will be looking forward to the EU’s industrial production data on Thursday, ahead of Germany’s February data for the harmonised index of consumer prices. The country will also report the consumer price index and the wholesale price index data for February on Friday.
EUR/CHF Technical Analysis (the 60-min Chart)
Technically, the EUR/CHF currency pair trades within a sideways channel formation in the 60-minute chart. However, the 14-hour RSI has recently pulled back to avoid rallying into the overbought conditions.
Therefore, the bears will look to extend the current pullback towards 0.9559 ot lower to 0.9512. On the other hand, the bulls will look to pounce on rebounds at about 0.9648 or higher at 0.9693.
EUR/CHF Technical Analysis (the Daily Chart)
In the daily chart, the EUR/CHF currency pair has completed an upward breakout from an ascending channel formation. The 14-day RSI also supports a long-term bullish bias as it moves closer to the overbought conditions.
Therefore, the bulls will look to ride the current run of gains toward 0.9764 or higher to 0.9923. On the other hand, the bears will look to pounce on pullbacks at about 0.9432 or lower at 0.9268.