On Wednesday, the EUR/CHF currency pair pulled back from the session highs of about 0.9409 to trade at about 0.9320. The currency pair also completed a downward breakout from an ascending channel formation in the 60-minute chart.

The pair has now plummeted to trade several levels below the 100-hour moving average line. As a result, the currency pair plunged to 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’s harmonized index of consumer prices for July matched the expected (MoM) change of 0.2%, the same as the preceding period. The core harmonized index of consumer prices for the month was also in line with the forecasted (YoY) change of 2.5%.

On Tuesday, Germany’s ZEW Survey for the current situation in August outperformed the expected reading of -68.8, with a reading of -61.1, up from the previous month’s equivalent of -77.6. The ZEW survey economic sentiment for the month also improved to 34.2, up from 26.3 in July, beating the forecasted reading of 30. On the other hand, the EU’s ZEW survey economic sentiment for August beat the expectation of 25.4, with a reading of 31.4, up from the previous month’s equivalent of 23.4.

Looking forward, traders will be waiting for the German producer price index data for July and the Swiss industrial production data for Q2 on Thursday.

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

Technically, the EUR/CHF currency pair has recently completed a downward breakout from an ascending channel formation in the 60-minute chart. The 14-hour RSI also supports a bearish bias after falling into oversold conditions.

Therefore, the bears will look to stretch the currency pullback towards 0.9301 or lower to 0.9284. On the other hand, the bulls will look to pounce on rebounds at about 0.9339, or higher at 0.9355.

EUR/CHF Technical Analysis (the Daily Chart)

In the daily chart, the EUR/CHF currency pair has also completed a downward breakout from an ascending channel formation. The 14-day RSI also supports a bearish bias after pulling back to avoid entering overbought conditions.

Therefore, the bears will look to extend the current pullback towards 0.9272 or lower to 0.9225. On the other hand, the bulls will look to pounce on profits at about 0.9362 or higher at 0.9409.