On Tuesday, the EUR/CHF currency pair pulled back from the session highs of about 0.9045 to trade at about 0.9026. The currency pair trades within a descending channel formation in the 60-minute chart.
Tuesday’s pullback pushed the pair a few levels below the 100-hour moving average line. As a result, the currency pair avoided rallying 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 busy period in the EU market. In Germany, January exports missed the expected change of -2%, with a change of -2.3%. Imports posted a change of -5.9%.
Earlier in the week, the seasonally-adjusted German industrial production for January also fell short of the forecasted (MoM) change of 0.9%, with a change of -0.5%. The (YoY) equivalent posted a change of -1.2%. Elsewhere, the EU’s Sentix Investor Confidence fell to -3.1, down from the previous update of 4.2.
Looking forward, trades will be waiting for Germany’s consumer price index data and the harmonized index of consumer prices for February on Wednesday. Traders will also be waiting for Germany’s Wholesale Price Index data for February and the EU’s industrial production data for January later in the week.
EUR/CHF Technical Analysis (the 60-min Chart)
Technically, the EUR/CHF currency pair trades within a descending channel formation in the 60-minute chart. The 14-hour RSI also supports a bearish bias after pulling back to avoid entering overbought conditions.
Therefore, the bears will look to stretch the latest pullback towards 0.8983 or lower to 0.8938. On the other hand, the bulls will look to pounce on profits at about 0.9068 or higher at 0.9113.
EUR/CHF Technical Analysis (the Daily Chart)
In the daily chart, the EUR/CHF currency pair also trades within a descending channel formation. The 14-day RSI also supports a bearish bias as it edges closer to oversold conditions.
Therefore, the bears will look to stretch the current run of declines toward 0.8920 or lower to 0.8793. On the other hand, the bulls will look to pounce on potential rebounds at about 0.9135 or higher at 0.9252.