On Wednesday, the EUR/CHF currency pair pulled back from the session highs of about 0.9349 to trade at about 0.9318. The currency pair trades within an ascending channel formation in the 60-minute chart.
Wednesday’s pullback momentarily pushed the pair below the 100-hour moving average line before making a late recovery. The recovery prevented the currency pair from falling into theoversold 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 Monday, the EU’s Sentix Investor Confidence for January improved to -1.8, up from -6.2. On the other hand, Germany’s seasonally-adjusted currency account balance for November rose to EUR 15.1 billion, up from EUR 14.8 billion.
Looking forward, traders will be waiting for the German wholesale price index data for December and the Real GDP Growth data on Thursday, ahead of the EU’s industrial production data and the trade balance data for November later in the afternoon.
Germany will also be reporting its consumer price index data and the harmonised index of consumer prices data for December on Friday morning, with analysts expecting unchanged figures on the harmonised data.
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 pulled back to recover from the overbought conditions before making a late rebound.
Therefore, the bulls will look to stretch the current rebound towards 0.9349 or higher to 0.9334. On the other hand, the bears will look to pounce on pullbacks at about 0.9299 or lower at 0.9283.
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 has recently bounced back to avoid moving closer to oversold conditions.
Therefore, the bulls will target an extended rebound at about 0.9380 or higher at 0.9443. On the other hand, the bears will look to pounce on profits at about 0.9247 or lower at 0.9182.