On Thursday, the EUR/CHF currency pair pulled back from the session highs of about 0.9351 to trade at about 0.9324. The currency pair trades within a sideways channel formation in the 60-minute chart.

The pair has now 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 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 Thursday, the Swiss National Bank chose to keep the base interest rate unchanged at 0%, in line with expectations. 

In Germany, the Gfk consumer confidence survey for October came in stronger than expected, with -22.3 versus a forecast of -23.3, up from -23.5 in the previous update. On Wednesday, Germany’s IFO business climate for September missed the expectation of 89.3 with a reading of 87.7. The IFO for the current assessment also fell short of 86.5, with a reading of 85.7, while the IFO expectations for the month failed to match the forecast of 92, with a reading of 89.7.

Earlier in the week, the German preliminary HCOB Manufacturing PMI for September missed the expectation of 50, with a reading of 48.5. The preliminary HCOB Services and Composite PMIs for the period beat 49.5 and 50.5, respectively, with 52.5 and 52.4. The EU’s preliminary HCOB Manufacturing PMI also missed 50.9, with 49.5, while the Services and Composite PMIs beat 50.5 and 51.1, respectively, with 51.4 and 51.2.

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. The 14-hour RSI also supports a bearish bias as it edges closer to oversold conditions.

Therefore, the bears will look to stretch the current pullback towards 0.9310 or lower to 0.9297. On the other hand, the bulls will look to pounce on rebounds at about 0.9338 or higher at 0.9351.

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 0.9282 or lower to 0.9239. On the other hand, the bulls will look to pounce on profits at about 0.9367 or higher at 0.9409.