On Wednesday, the EUR/CHF currency pair pulled back off the key resistance at 0.9339 to trade at about 0.9321 after the latest round of data. The currency pair continues to trade within an ascending channel formation in the 60-minute chart.
The pullback pushed the currency pair slightly below the 100-hour moving average line. As a result, the currency pair has 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 at the back of a relatively busy period in the EU market. On Wednesday, the German unemployment change for December beat the expectation of 20k with a significantly lower tally of 5k. The unemployment rate for the period remained unchanged at 5.9% in line with estimates. On Tuesday, Germany’s HCOB Manufacturing PMI for December beat the expectation of 43.1 with a reading of 43.3.
In the EU, the HCOB Manufacturing PMI for the period also outshone the forecasted reading of 44.2 with a reading of 44.4. Elsewhere, the M3 Money Supply for November outshone the forecasted (MoM) change of 1% with a change of 0.9%. Traders will look forward to the German Harmonised Index of Consumer Prices on Thursday, ahead of the EU’s equivalent on Friday. Germany will also release retail sales data for November on Friday.
EUR/CHF Technical Analysis (the 60-min Chart)
Technically, the EUR/CHF currency pair is trading within an ascending channel formation in the 60-minute chart. Wednesday’s pullback prevented the 14-hour RSI from advancing into overbought conditions.
Therefore, the bears will be targeting extended pullbacks at about 0.9302 or lower at 0.9281. On the other hand, the bulls will look to pounce on profits at about 0.9339 or higher at 0.9360.
EUR/CHF Technical Analysis (the Daily Chart)
In the daily chart, the EUR/CHF currency pair appears to be trading within a descending channel formation. The 14-day RSI also appears to support a long-term bearish bias after falling into oversold conditions.
Therefore, the bears will be looking to ride the current run of declines toward 0.9256 or lower to 0.9191. On the other hand, the bulls will look to pounce on rebounds at about 0.9383 or higher at 0.9451.