On Thursday, the EUR/CHF currency pair pulled back from the session highs of about 0.9320 to trade at about 0.9288. The currency pair trades within an ascending channel formation in the 60-minute chart.

The pair has still trades slightly above the 100-hour moving average line. However, Thursday’s pullback prevented the currency pair from entering 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, European Central Bank lowered the base interest rate by 25 basis points to 2.4%, down from 2.65% in line with expectations. The rate on deposit facility was also cut by 25 basis points to 2.25%, down from 2.5%, matching market forecasts.

On the other hand, Germany’s producer price index for March missed the expected (MoM) rate of -0.1% with -0.7%, while the (YoY) equivalent fell short of 0.4% with -0.2%.

Earlier in the week, Germany’s ZEW survey for the current situation beat the forecast of -86 with a reading of -81.2, while the ZEW survey economic sentiment missed 9.3 with a reading of -14. Elsewhere, the EU’s seasonally-adjuste industrial production for February outperformed the expected 0.2% with a change of 1.1%, while the ZEW survey for economic sentiment missed 14.2 with -18.5.

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 extend the current pullback towards 0.9257 or lower to 0.9228. On the other hand, the bulls will look to pounce on rebounds at about 0.9320 or higher at 0.9349.

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 bearish bias as it moves closer to oversold conditions.

Therefore, the bears will look to ride the current declines toward 0.9138 or lower to 0.8969. On the other hand, the bulls will look to pounce on rebounds at about 0.9445 or higher at 0.9611.