On Wednesday, the EUR/CHF currency pair pulled back from the session highs of about 0.9379 to trade at about 0.9304. The currency pair also completed a downward breakout from an ascending channel formation in the 60-minute chart.

The pair has since fallen to trade a few levels below the 100-hour moving average line. As a result, the currency 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 Wednesday, the EU retail sales for March missed the (MoM) expectation of 0% with a change of -0.1%. The (YoY) equivalent also fell short of 1.6% with a change of 1.5%. 

On the other hand, Germany’s seasonally adjusted factory orders for March outperformed the expected (MoM) change of 1.3% with a change of 3.6%. On Tuesday, the EU’s producer price index for March missed the expected (YoY) change of 2% with a change of 1.9%, while the (MoM) equivalent was in line with the estimate of -1.6%. 

Elsewhere, the EU’s HCOB Composite PMI for April outshone the forecasted reading of 50.1 with a reading of 50.4.  Germany’s HCOB Composite PMI also came in higher than 49.7 with a reading of 50.1, while the HCOB Services PMI beat 48.8 with 49.  

In Switzerland, the consumer price index for April was unchanged at 0% (MoM), missing the forecast of 0.2%. The (YoY) equivalent fell to 0%, down from 0.3%.

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

Technically, the EUR/CHF currency pair has completed a downward breakout from an ascending channel formation in the 60-minute chart. The 14-hour RSI has also plummeted to move closer to oversold conditions.

Therefore, the bears will look to stretch the current pullback towards 0.9266 or lower to 0.9229. On the other hand, the bulls will look to pounce on rebounds at about 0.9344 or higher at 0.9379

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 0.9217 or lower to 0.9139. On the other hand, the bulls will look to pounce on profits at about 0.9386 or higher at 0.9461.