On Wednesday, the EUR/CHF currency pair pulled back from the session highs of about 0.9334 to trade at about 0.9307. The currency pair trades within a sideways channel formation on the 60-minute chart.
The pair has now plummeted to trade slightly 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 Tuesday, the German consumer price index for September matched the (MoM) forecast of 0.6%. The (YoY) equivalent was also unchanged from August, matching the forecast of 3.3%.
The harmonized index of consumer prices for the month was also in line with the (MoM) and (YoY) forecasts of 0.6% and 3.3%, respectively, unchanged from August. On Wednesday, Germany’s wholesale price index for September outperformed the (MoM) forecast of 0.7%, with a change of 1.9%.
Looking forward, traders will be waiting for the EU’s seasonally adjusted industrial production data for August on Thursday, ahead of harmonized index of consumer prices data and the trade balance for August, expected on Friday. In Switzerland, traders will be waiting for the producer price index data for September on Thursday.
EUR/CHF Technical Analysis (the 60-min Chart)
Technically, the EUR/CHF currency pair trades within a sideways channel formation in the 60-minute chart. However, the 14-hour RSI has recently pulled back to move closer to oversold conditions.
Therefore, the bears will look to stretch the current pullback towards 0.9278 or lower, down to 0.9248. On the other hand, the bulls will look to pounce on rebounds at about 0.9334 or higher, up to 0.9361.
EUR/CHF Technical Analysis (the Daily Chart)
In the daily chart, the EUR/CHF currency pair trades within an ascending channel formation. However, the 14-day RSI has recently pulled back to avoid rallying into overbought conditions.
Therefore, the bears will look to extend the latest pullback towards 0.9224 or lower, down to 0.9130. On the other hand, the bulls will look to pounce on rebounds at about 0.9385 or higher, up to 0.9477.