On Friday, the EUR/CHF currency pair pulled back from the session highs of about 0.9144 to trade at about 0.9118 after the latest data. The currency pair trades within a descending channel formation in the 60-minute chart.

The pair has now plummeted to trade slightly below the 100-hour moving average line. However, the currency pair still has some room left to run before reaching the oversold 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 both markets. In Switzerland, the consumer price index for January missed the expected (MoM) change of 0%, with a change of -0.1%. The (YoY) equivalent matched the forecasted change of 0.1%.

In the EU, the German Wholesale Price Index for January outperformed the expectation of 0.1%, with a change of 0.9%. The preliminary EU employment change for Q4 also exceeded the (QoQ) forecast of 0.1%, with a change of 0.2%, while the (YoY) equivalent matched the estimate of 0.6%. The preliminary EU gross domestic product for Q4 also exceeded the forecasted (YoY) change of 1.3%, with a change of 1.4%. The (QoQ) equivalent was in line with the estimate of 0.3%.

The EU’s trade balance for December improved to EUR 12.6 billion, up from EUR 9.3 billion in November. The seasonally adjusted trade balance for the period also edged higher to EUR 11.6 billion, up from EUR 10.2 billion in the preceding period.

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

Technically, the EUR/CHF currency pair trades within a descending channel formation in the 60-minute chart. However, the 14-hour RSI still has some room left to run before reaching oversold conditions.

Therefore, the bears will look to stretch the latest pullback towards 0.9094 or lower to 0.9070. On the other hand, the bulls will look to pounce on rebounds at about 0.9144 or higher at 0.9167.

EUR/CHF Technical Analysis (the Daily Chart)

In the daily chart, the EUR/CHF currency pair trades within a descending channel formation. The 14-day RSI also supports a long-term bearish bias as it edges closer to oversold conditions.

Therefore, the bears will look to ride the current run of declines toward 0.9012 or lower to 0.8897. On the other hand, the bulls will look to pounce on rebounds at about 0.9219 or higher at 0.9327.