EUR/CHF Pulls Back Off 8-Month Highs of 1.1100 After Markit PMIs

Free $100 Forex No-Deposit Bonus

The EUR/CHF currency pair on Thursday morning pulled back off the current 8-month highs of about 1.1100 to trade at 1.1090 after the EU Markit PMIs. The currency pair appears to have hit a short-term ceiling around 1.1100 which it also hit again last month.

If this pattern formation continues, the currency pair could extend the current pullback closer to last week’s lows of 1.0900. It continues to trade very close to the overbought levels of the 14-hour RSI in the 60-min chart.

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 Wednesday the EU Markit PMI Composite for February beat the expectation of 48.1 with 48.8. The Markit Services PMI also outperformed 44.7 with 45.7.  The EU January producer price index beat expectations on both the (YoY) and (MoM) basis. Earlier in the week, the preliminary core consumer price index for February matched the expectation of 1.1%. On the other hand, the general CPI came short of 1% with 0.9%.

Traders will be looking forward to Thursday’s January retails sales data and the unemployment rate. Elsewhere, Germany retail sales for January missed the (YoY) expectation of 1.2% with a change of -8.7%. The (MoM) equivalent also came short of -1% with -4.5%. This could have a huge bearing on Thursday’s EU retail sales data for January.

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

Technically, the EUR/CHF currency pair appears to have recently bounced back to rally towards the current 8-month highs of 1.1100. The pair has since found strong resistance prompting another pullback. This could extend closer to last week’s lows.

The bulls will be targeting another rebound at around 1.1100 or higher at 1.1116. On the other hand, the bears will look to extend the current pullback towards 1.1076 or lower to 1.1057.

EUR/CHF Technical Analysis (the Daily Chart)

In the daily chart, the EUR/CHF currency pair appears to have recently made a bullish breakout from a gently ascending wedge formation. This indicates an acceleration of the long-term bullish bias in the market sentiment.

The bulls will be looking to extend this rally towards 1.1159 or higher to 1.1254. On the other hand, the bears will target potential pullbacks at around 1.0999 or lower at 1.0895.

Copyright © 2021. All Rights Reserved. FXDailyReport.Com
Risk Warning: Trading CFDs is a high risk activity and you may lose more than your initial deposit. You should never invest money that you cannot afford to lose. FXDailyReport.com will not accept any liability for loss or damage as a result of reliance on the information contained within this website including data, quotes, charts and buy/sell signals. Please be fully informed regarding the risks and costs associated with trading the financial markets.