On Wednesday, the EUR/CHF currency pair pulled back from the session highs of about 0.9357 to trade at about 0.9338. The currency pair trades within a descending channel formation in the 60-minute chart.

The pair has now fallen to trade slightly below the 100-hour moving average line. However, the currency pair still has room left to run before reaching 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 November matched the (MoM) forecast of -0.3%, unchanged from October. The core harmonized index of consumer prices for the period was also in line with the estimate of 2.4%, also unchanged from October.

On the other hand, Germany’s IFO business climate for December missed the expectation of 88.2, with a reading of 87.6. The IFO for the current assessment for the period also fell short of 85.7, with a reading of 86.5, while the IFO expectations for the month failed to match the forecast of 90.5, with a reading of 89.7.

Earlier in the week, Germany’s preliminary HCOB Composite PMI for December missed the expected reading of 52.5, with a reading of 51.5. The preliminary HCOB Manufacturing PMI for the period also fell short of 48.5, with a reading of 47.7, while the preliminary HCOB Services PMI failed to match the forecast of 52.8, with a reading of 52.6. 

The EU’s preliminary HCOB Composite, Manufacturing, and Services PMIs for the period fell short of 53, 49.9, and 53.9, respectively, with 51.9, 49.2, and 52.6.

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. However, the 14-hour RSI still has room left to run before reaching oversold conditions.

Therefore, the bears will look to stretch the current declines toward 0.9318 or lower to 0.9295. On the other hand, the bulls will look to pounce on profits at about 0.9357 or higher at 0.9379.

EUR/CHF Technical Analysis (the Daily Chart)

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

Therefore, the bears will look to stretch the current pullbacks toward 0.9261 or lower to 0.9183. On the other hand, the bulls will look to ride the current rally towards 0.9425 or higher to 0.9503.