On Wednesday, the EUR/CHF currency pair pulled back from the session highs of about 0.9434 to trade at about 0.9422. The currency pair trades within an ascending channel formation on the 60-minute chart.

The pair continues to trade several levels above the 100-hour moving average line, despite the pullback. Wednesday’s pullback prevented the currency pair from advancing 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 Tuesday, the German retail sales for July missed the expected (MoM) change of 0.4%, with a change of -3.4%. On the other hand, the country’s HCOB Manufacturing PMI for August outperformed the expectation of 54.1, with a reading of 54.3. 

Elsewhere, the EU’s unemployment rate for July was unchanged at 6.4%, missing the forecasted rate of 6.3%. The preliminary harmonized index of consumer prices for August matched the expectation of 3.3%. The preliminary core harmonized index of consumer prices for the month fell short of the forecasted change of 2.5%, with a change of 2.4%.

Earlier in the week, the preliminary German consumer price index for August missed the (MoM) forecast of 0.3%, with a change of 0.2%. The (YoY) equivalent was in line with the estimate of 2.9%. On the other hand, Germany’s harmonized index of consumer prices for the period missed both the (MoM) and (YoY) forecasts of 0.3% and 3.1%, respectively, with 0.2% and 2.9%. In Switzerland, retail sales for July outperformed the forecasted (YoY) change of 1.3%, with a change of 2.3%.

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

Technically, the EUR/CHF currency pair trades within an ascending channel formation on 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 pounce on extended pullbacks at about 0.9407, or lower at 0.9388. On the other hand, the bulls will look to pounce on profits at about 0.9434 or higher at 0.9453.

EUR/CHF Technical Analysis (the Daily Chart)

In the daily chart, the EUR/CHF currency pair also trades within an ascending channel formation. The 14-day RSI also supports a long-term bullish bias as it edges closer to overbought conditions.

Therefore, the bulls will look to stretch the current run of gains toward 0.9458 or higher to 0.9499. On the other hand, the bears will look to pounce on pullbacks at about 0.9380, or lower at 0.9337.