The EUR/CHF currency pair on Friday pulled back off the current February highs of about 1.0031 to trade at about 1.0000. The currency pair continues to trade within an ascending channel formation in the 60-min chart.

The pair remains slightly above the 100-hour moving average line despite the late pullback. However, the pair has since retracted to avoid rallying into the 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 Friday, the S&P Global Composite PMI for January slightly outperformed the expectation of 50.2 with a reading of 50.3.

The S&P Global Services PMI also beat 50.7 with 50.8, while the producer price index for December outshone the (MoM) and (YoY) forecasts of -0.4% and 22.5%, respectively with a change of 1.1% and 24.6%. On Thursday, the European Central Bank raised the base interest rate by 50 basis points to 2.5% in line with expectations.  The bank also raised the base rate on the main refinancing operations to 3% from 2.5%.

Earlier in the week, the preliminary core harmonised index for consumer prices for January outshone the expected change of 5.1%, with a change of 5.2% (YoY), while the (MoM) equivalent missed -0.2% with a change of -0.8%. The general harmonised index of consumer prices also missed the (YoY) estimate of 9% with a change of 8.5%, with the (MoM) equivalent falling short of -0.3% with a change of -0.4%.

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

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

Therefore, the bulls will be targeting extended gains at about 1.0031 or higher at 1.0066. On the other hand, the bears will look to pounce on pullbacks at about 0.9966 or lower at 0.9934.

EUR/CHF Technical Analysis (the Daily Chart)

In the daily chart, the EUR/CHF currency pair appears to be trading within an ascending channel formation. This also indicates a significant long-term bullish bias in the market sentiment.

Therefore, the bulls will be targeting long-term profits at about 1.0096 or higher at 1.0177. On the other hand, the bears will be targeting pullback profits at about 0.9921 or lower at 0.9826.