On Thursday, the EUR/CHF currency pair pulled back from the session highs of about 0.9408 to trade at about 0.9388. The currency pair trades within a sideways channel formation in the 60-minute chart.
The pair has now descended to trade slightly below the 100-hour moving average line. However, the currency pair still has some 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 Thursday, the EU’s harmonised index of consumer prices for September remained unchanged at -0.1% (MoM) in line with expectations. The core harmonised index of consumer prices was also in line with the forecast of 2.7% (YoY), unchanged from the previous period.
Earlier in the week, the EU’s ZEW survey economic sentiment for October beat the expectation of 16.9 with a reading of 20.1. Germany’s ZEW survey economic sentiment for the period also outshone the estimate of 10 with a reading of 13.1. In contrast, the ZEW survey for the current situation missed the forecast of -84.5 with a reading of -86.9.
On the other hand, the EU industrial production for August was in line with the expected change of 1.8%. Traders will be looking forward to proceedings at the EU on Friday.
EUR/CHF Technical Analysis (the 60-min Chart)
Technically, the EUR/CHF currency pair trades within a sideways channel formation in the 60-minute chart. The 14-hour RSI has recently pulled back to avoid rallying into overbought conditions.
Therefore, the bears will look to extend the current pullback towards 0.9369 or lower to 0.9351. On the other hand, the bulls will look to pounce on rebounds at about 0.9408 or higher at 0.9425.
EUR/CHF Technical Analysis (the Daily Chart)
In the daily chart, the EUR/CHF currency pair trades within a consolidative triangle formation. The 14-day RSI also remains central, leaving room for bulls and bears to pounce on either side of the indicator.
Therefore, the bulls will look to pounce on upward movements at about 0.9445 or higher at 0.9503. On the other hand, the bears will look to pounce on pullbacks at about 0.9319 or lower at 0.9254.