The EUR/CHF currency pair on Friday pulled back off the day’s session highs of about 0.9864 to trade at about 0.9836. The currency pair continues to trade within a descending channel formation in the 60-min chart.

The pair has now declined to trade several levels below the 100-hour moving average line. Friday’s midday pullback prevented the currency pair from advancing into the overbought levels of the 14-hour RSI.

EUR/CHF Fundamentals Overview

From a fundamental perspective, the EU markets remained relatively quiet during the week due to the festive season. However, there was still some news that made an impact on the currency pair.

On Friday, the KOF Leading Index for Switzerland, which measures the outlook of the economic activity and GDP growth prospects outperformed the December 2022 forecast of 86.9 with a reading of 92.2. Earlier in the week, the ZEW survey expectations for December also outshone the expectations of -50.5 with a reading of -42.8.

In the EU region, the M3 Money supply for November beat the expected (YoY) change of 4.1% with a change of 4.8%. Private Loans for the period matched the (YoY) expectations of 4.1%, while the M3 Money supply for the three months ended November 30, grew by 5.4%, down from the previous period’s equivalent of 5.8%.

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

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

Therefore, the bears will be looking to extend the current declines toward 0.9823 or lower to 0.9809. On the other hand, the bulls will look to pounce on rebounds at about 0.9850 or higher at 0.9865.

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 indicates a significant long-term bullish bias in the market sentiment.

Therefore, the bulls will be looking to ride the current bull run towards 0.9887 or higher to 0.9944. On the other hand, the bears will be targeting potential pullbacks at about 0.9786 or lower at 0.9726.