On Thursday, the EUR/CHF currency pair pulled back from the session highs of about 0.9353 to trade at 0.9341 after the ECB’s rate decision. The currency pair trades within an ascending channel formation in the 60-minute chart.
However, Thursday’s pullback pushed the pair lower to trade at 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. On Thursday, the European Central Bank chose to keep the base interest rate unchanged at 2.15%, in line with expectations. The deposit rate also remains unchanged, as predicted at 2%.
Earlier in the week, Germany’s trade balance for July fell to EUR 14.7 billion, down from EUR 15.4 billion in June, missing the forecasted balance of EUR 15.4 billion.
On the other hand, the seasonally-adjusted industrial production for July matched the forecasted (MoM) change of 1.3%, up from -0.1% in the previous month. The (YoY) equivalent improved with a change of 1.5%, versus -1.8% in the corresponding period. Elsewhere, the EU’s Sentix investor confidence for July fell to -9.2 versus a -3.7 in August.
Looking forward, traders will be waiting for Germany’s harmonised index of consumer prices for August on Friday.
EUR/CHF Technical Analysis (the 60-min Chart)
Technically, the EUR/CHF currency pair trades within an ascending channel formation in the 60-minute chart. However, the 14-hour RSI has recently pulled back to avoid rallying into overbought conditions.
Therefore, the bears will look to stretch the current pullback towards 0.9328 or lower to 0.9317. On the other hand, the bulls will look to pounce on rebounds at about 0.9353 or higher at 0.9365.
EUR/CHF Technical Analysis (the Daily Chart)
In the daily chart, the EUR/CHF currency pair trades within a descending channel formation. However, the 14-day RSI still has room left to run before reaching oversold conditions.
Therefore, the bears will look to ride the current run of declines toward 0.9289 or lower to 0.9234. On the other hand, the bulls will look to pounce on rebounds at about 0.9387 or higher at 0.9446.