EUR/CHF Pulls Back Off 10-Day Highs To Trade Below 1.0800 After EU Data

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The EUR/CHF currency pair on Friday pulled back off the current 10day highs of about 1.0825 to trade at around 1.0820 after EU data. The currency pair continues to trade within a slightly ascending channel in the 60-min chart.

It remains pinned well above the current levels of the 100-hour and the 200-hour SMA lines. Friday’s pullback prevented the currency pair from crossing to overbought levels of the 14-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 Thursday, the German IFO business climate for September missed the expectation of 93.8 with 93.4. Current assessment and expectations for the period also came short of 89.5 and 98, respectively with 89.2 and 97.7.

Earlier in the week, the preliminary German Markit Manufacturing PMI for September beat the expectation of 52.5 with 56.6. On the other hand, the PMI Composite missed 54.2 with 53.7 while the Services PMI came short of 52.9 with 49.1. The EU preliminary PMIs mirrored Germany’s performance with Manufacturing impressing while Services and Composite PMIs disappointed. The Gfk Consumer Confidence survey for the period also underperformed with -1.6 versus an expectation of -1. 

In Switzerland, the Swiss National Bank (SNB) on Thursday chose to keep the base interest rate unchanged at -0.75%.

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

Technically, the EUR/CHF currency pair appears to be trading within a slightly ascending channel in the 60-min chart. This indicates a slight short-term bullish bias in the market sentiment. 

The bulls will be targeting short-term profits at around 1.0841 or higher at 1.0877. On the other hand, the bears will look to pounce for profits at around 1.0750 or lower at 1.0710.

EUR/CHF Technical Analysis (the Daily Chart)

In the daily chart, the EUR/CHF currency pair appears to have recently made a bullish trend reversal to break out of a descending channel. The pair now appears to be trading within an ascending wedge. This indicates an attempt by the bulls to take long-term control.

They will target long-term profits at around 1.0910 or higher at 1.1045. On the other hand, the bears will look to retain long-term control by targeting profits at around 1.0667 or lower at 1.0517.

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