On Wednesday, the EUR/CHF currency pair pulled back off the session highs of about 0.9385 to trade at about 0.9354. The currency pair trades within a descending channel formation in the 60-minute chart.
The pair has now plummeted to trade a few levels below the 100-hour moving average line. As a result, the currency pair has moved closer 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 French unemployment rate for Q3 increased slightly to 7.4%, up from 7.3% in the previous quarter, in line with the forecasted rate of 7.4%.
On Wednesday, Germany’s ZEW economic sentiment for November plunged to 7.1, down from 13.1 in October, missing the forecast of 13, while the EU’s equivalent missed 20.5 with 12.5, down from 20.1 in the preceding period. On the other hand, the German inflation rate for October increased to 2% (YoY), up from 1.6% in September in line with the forecast of 2%. The (MoM) equivalent also edged higher to 0.4%, up from 0%, matching the expectation of 0.4%.
Traders will be looking forward to the EU gross domestic data and employment change data on Thursday, ahead of the German wholesale price data and the French and Italian inflation data on Friday.
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 recently pulled back to move closer to the oversold conditions of the indicator.
Therefore, the bears will look to extend the current pullback towards 0.9333 or lower to 0.9311. On the other hand, the bulls will look to pounce on rebounds at about 0.9376 or higher at 0.9398.
EUR/CHF Technical Analysis (the Daily Chart)
In the daily chart, the EUR/CHF currency pair trades within a consolidative triangle formation. However, the 14-day RSI still seems to have more room to run before reaching oversold conditions.
Therefore, the bears will be looking to extend the current decline towards 0.9281 or lower to 0.9209. On the other hand, the bulls will look to pounce on rebounds at about 0.9426 or higher at 0.9495.