On Thursday, the EUR/CHF currency pair pulled back from the session highs of about 0.9428 to trade at about 0.9401. The currency pair trades within an ascending channel formation in the 60-minute chart.

The pair continues to trade significantly above the 100-hour moving average line. However, the currency pair still has room left to run before running into the overbought 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 seasonally-adjusted EU-trade balance for June missed the expectation of EUR 17.3 billion with EUR 14.9 billion. The seasonally-adjusted industrial production for the month also fell short of the forecasted change of -0.5% with a change of -1.9%. 

Earlier in the week, EU retail sales for June missed the (MoM) forecast of 0.4% with a change of 0.3%, while the (YoY) equivalent outshone the estimate of 2.6% with a change of 3.1%. Germany’s factory orders for the month failed to match the forecast of 1% with a change of -1% (MoM).

The EU’s producer price index for the period exceeded the (YoY) forecast of 0.5% with a change of 0.6%. The (MoM) equivalent was in line with the estimate of 0.8%. In Switzerland, the consumer price index for July outperformed the (MoM) expectation of -0.2% with 0%. The (YoY) equivalent also beat the forecast of 0.1%, with 0.2%.

EUR/CHF Technical Analysis (the 60-min Chart)

Technically, the EUR/CHF currency pair trades within an ascending channel formation in the 60-minute chart. However, 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 0.9373 or lower to 0.9342. On the other hand, the bulls will look to pounce on profits at about 0.9428 or higher at 0.9460.

EUR/CHF Technical Analysis (the Daily Chart)

In the daily chart, the EUR/CHF currency pair has completed an upward breakout from a descending channel formation. The 14-day RSI also supports a bullish bias as it edges closer to overbought conditions.

Therefore, the bulls will look to extend the current rebound towards 0.9470 or higher to 0.9536. On the other hand, the bears will look to pounce on pullbacks at about 0.9331 or lower at 0.9265.