On Wednesday, the EUR/CHF currency pair pulled back from the session highs of about 0.9397 to trade at about 0.9372. 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. 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 during a relatively busy period in both markets. In Switzerland, traders will be waiting for the Q4 gross domestic data on Thursday. On Wednesday, the Swiss ZEW survey expectations for February fell to 3.4, down from 17.7 in January, while the German GfK consumer confidence survey for March edged lower to -24.7, down from -22.4, missing the forecast of -21.

Earlier in the week, Germany’s Q4 gross domestic product matched the (QoQ) and (YoY) forecasts of -0.2% and -0.2%, same as the previous period. On the other hand, the country’s IFO business climate for February missed the expectation of 85.8 with a reading of 85.2, while the IFO for the current assessment fell short of 86.5 with 85. Elsewhere, the IFO expectations for the month outshone the estimate of 85.2 with a reading of 85.4.

The EU’s harmonised index of consumer prices for January matched the (MoM) forecast of 0.3%, while the core harmonised index of consumer prices for the period was in line with the estimate of 2.7% (YoY).

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 bearish bias as it edges closer to the oversold conditions.

Therefore, the bears will look to extend the current pullback towards 0.9349 or lower to 0.9323. On the other hand, the bulls will look to pounce on rebounds at about 0.9397 or higher at 0.9422.

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 pullback towards 0.9284 or lower to 0.9207. On the other hand, the bulls will look to pounce on profits at about 0.9466 or higher at 0.9559.