The EUR/CHF currency pair on Monday pulled back from the trendline support at 0.9962 to trade at about 0.9946 following the latest round of data. The currency pair continues to trade within a descending channel formation in the 60-min chart.
The pair has now plummeted to trade several levels below the 100-hour moving average line. As a result, the currency pair seems to be moving closer to the oversold 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 Monday, the EU retail sales for January missed the expected (YoY) change of -2.7% with a change of -2.8%. The (MoM) equivalent also came short of the forecasted change of -2.5% with a change of -2.7%. On the other hand, the Sentix Investor Confidence for February outperformed the expected change of -12.8% with a change of -8%.
Elsewhere, Germany’s seasonally adjusted factory orders for December beat the (MoM) expectation of 2% with a change of 3.2%. On the other hand, the non-seasonally adjusted factory orders for the period missed the forecasted (YoY) change of -7.1% with a change of -10.1%. Traders will be looking forward to Switzerland’s unemployment rate for January on Tuesday and Germany’s industrial production data.
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-min chart. This indicates a significant short-term bearish bias in the market sentiment.
Therefore, the bears will be looking to extend the current declines toward 0.9931 or lower at 0.9917. On the other hand, the bulls will be targeting potential rebound profits at about 0.9962 or higher at 0.9975.
EUR/CHF Technical Analysis (the Daily Chart)
In the daily chart, the EUR/CHF currency pair appears to be about to break out from a consolidative triangle formation. This indicates an attempt by the bears to take control of the pair after a strong battle with the bulls.
The bears will be targeting potential downward breakout profits at about 0.9889 or lower at 0.9826. On the other hand, the bulls will look to pounce on profits at about 1.0003 or higher at 1.0066.