On Thursday, the EUR/CHF currency pair pulled back from the session highs of about 0.9306 to trade at about 0.9282. The currency pair trades within a descending channel formation in the 60-minute chart. 

The currency pair continues to trade a few levels below the 100-hour moving average line. As a result, the pair is on the verge of entering 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 the EU market. On Thursday, the Swiss retail sales for June outperformed the (YoY) forecast of 0.2% with a change of 3.8%. Earlier in the week, the ZEW Survey expectations for July improved to 2.4, up from -2.1.

In Germany, the preliminary consumer price index for July beat the expected (MoM) and (YoY) rates of 0.2% and 1.9%, respectively, with 0.3% and 2%. The preliminary harmonised index of consumer prices for the month missed the forecast of 1.9% (YoY) with 1.8%. The (MoM) equivalent was in line with the estimate of 0.4%. The German unemployment change for June came in better than expected with 2k versus a forecast of 15k, down from 11k in May.

The seasonally adjusted unemployment rate for the month remained unchanged at 6.3%, beating the forecast of 6.4%. The EU economic bloc for the period was also unchanged at 6.2%, also beating the forecast of 6.3%. Earlier in the week, the German retail sales for June beat the expected (MoM) change of 0.5% with a change of 1%.

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

Technically, the EUR/CHF currency pair trades within a descending channel formation in the 6-minute chart. The 14-hour RSI has also pulled back to move closer to oversold conditions. 

Therefore, the bears will look to extend the current pullback towards 0.9257 or lower to 0.9231. On the other hand, the bulls will look to pounce on a rebound at about 0.9306 or higher at 0.9331.

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 0.9211 or lower to 0.9144. On the other hand, the bulls will look to pounce on profits at about 0.9349 or higher at 0.9417.