On Wednesday, the EUR/CHF currency pair pulled back from the session highs of about 0.9385 to trade at about 0.9332. The currency pair trades within a descending channel formation in the 60-minute chart. 

The pair has now descended to trade a few levels below the 100-hour moving average line. As a result, the currency pair has entered the oversold conditions 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 harmonised index of consumer prices for November matched the (MoM) forecast of -0.3%, unchanged from October.

The core harmonised index of consumer prices for the period edged slightly lower to 2.7% (YoY), down from 2.8% in October, in line with estimates. On Tuesday, the EU’s ZEW survey economic sentiment for December improved to 17, up from 12.5 in November, beating the forecast of 12.2.

Germany’s IFO business climate for December missed the expectation of 85.6 with a reading of 84.7. On the other hand, the IFO for the current assessment beat the expectation of 84 with a reading of 85.1, while the IFO expectations for the month missed 87.5 with a reading of 84.4.

Elsewhere, Germany’s ZEW survey for the current assessment missed the expectation of -92.6 with a reading of -93.1, while the ZEW survey for economic sentiment beat 6.2 with a reading of 15.7.

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

Technically, the EUR/CHF currency pair trades within a descending channel formation in the 60-minute chart. The 14-hour RSI has also pulled back to move closer to the oversold conditions of the indicator.

Therefore, the bears will look to stretch the current pullback towards 0.9307 or lower to 0.9281. On the other hand, the bulls will look to pounce on rebounds at about 0.9358 or higher at 0.9385.

EUR/CHF Technical Analysis (the Daily Chart)

In the daily chart, the EUR/CHF currency pair trades within a descending channel formation. The 14-day RSI has recently pulled back to avoid rallying into the overbought conditions of the indicator.

Therefore, the bears will look to extend the current pullback towards 0.9255 or lower to 0.9176. On the other hand, the bulls will look to pounce on profits at about 0.9403 or higher at 0.9479.