The EUR/CHF currency pair on Friday pulled back off the trendline resistance of an ascending channel formation following the latest round of German data. The pair now trades below the 1.0850 level following the pullback.
It has also slipped below the 100-hour moving average in the 60-min chart. However, the currency pair is still several levels from reaching oversold conditions of the 14-hour RSI. Therefore, the current trend formation could continue to the foreseeable future.
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 Friday, the German IFO-Business Climate for September missed the expectation of 100.4 with 98.8. The currency assessment data also came short of 100.8 with 100.4, while IFO expectations missed 100 with 97.3. On Thursday, the preliminary EU Markit Manufacturing PMI for September missed the estimate of 60.3 with 58.7, while the Services PMI came short of 58.5 with 56.3.
On the other hand, the PMI Composite for the period missed 58.5 with 56.1. Germany’s preliminary Markit PMIs for September were all below expectations. Earlier in the week, the EU Consumer confidence for September beat the expectation of -5 with -4, while Germany’s producer price index for August outperformed both the (MoM) and (YoY) expectations.
In Switzerland, the Swiss National Bank decided to keep the base interest rate unchanged at -0.75%, in line with expectations. Earlier in the week, the Swiss trade balance, imports, and exports came in slightly lower compared to the previous period.
EUR/CHF Technical Analysis (the 60-min Chart)
Technically, the EUR/CHF currency pair seems to be trading within an ascending channel formation in the 60-min chart. The currency pair has recently dropped to trade below the 100-hour moving average.
Therefore, the bears will be looking to extend the current pullback towards 1.0830 or lower to 1.0814. On the other hand, the bulls will target potential rebound profits at approximately 1.0864 or higher at 1.0880.
EUR/CHF Technical Analysis (the Daily Chart)
In the daily chart, the EUR/CHF currency pair seems to be trading within an ascending channel formation after performing an upward reversal. However, the currency pair is yet to reach the overbought conditions of the 14-day RSI.
Therefore, the bulls will look to extend the current rally towards 1.0905 or higher to 1.0971. On the other hand, the bears will target extended pullbacks at about 1.0782 or lower at 1.0713.