On Wednesday, the EUR/CHF currency pair pulled back from the session highs of about 0.9373 to trade at about 0.9338. The currency pair trades within a descending channel formation in the 60-minute chart.
The pair has now dropped to trade a few levels below the 100-hour moving average line. As a result, the currency pair is on the verge of entering the oversold levels of the 14-hour RSI.
EUR/CHF Fundamentals Overview
From a fundamental perspective, the EUR/CHF currency pair trades ahead of a relatively busy period in the EU market. On Thursday, traders will be looking forward to the EU economic block’s and Germany’s preliminary HCOB Manufacturing, Services and Composite PMIs for October, ahead of the German business climate, current assessment and expectations data for the same month later on Friday.
On Wednesday, the preliminary EU consumer confidence data for October improved to -12.5 up from the preceding month’s equivalent of -12.9, in line with expectations.
Earlier in the week, the German Producer Price index for September missed the expected (MoM) change of -0.2% with a change of -0.5%, down from the preceding period’s equivalent of -0.2%. The (YoY) equivalent also worsened with a change of -1.4% compared to a change of -0.8% posted in the preceding period.
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 also supports a short-term bearish bias as it moves closer to oversold conditions.
Therefore, the bears will look to extend the current pullback towards 0.9318 or lower to 0.9299. On the other hand, the bulls will look to pounce on rebounds at about 0.9356 or higher at 0.9373.
EUR/CHF Technical Analysis (the Daily Chart)
In the daily chart, the EUR/CHF currency pair trades within a descending consolidative triangle formation. However, the 14-day RSI still has room left to run before reaching the oversold conditions.
Therefore, the bears will be targeting long-term declines at about 0.9275 or lower at 0.9213. On the other hand, the bulls will look to pounce on rebounds at about 0.9399 or higher at 0.9461.