The EUR/CHF currency pair on Wednesday pulled back off the session highs of about 0.9460 to trade at about 0.9435. The currency pair continues to trade within a descending channel formation in the 60-min chart.

Wednesday’s declines pushed the currency pair further below the 100-hour moving average line. As a result, the currency pair appears to be moving closer to the oversold levels of the 14-hour RSI.

EUR/CHF Fundamentals Overview

From a fundamental perspective, the EUR/CHF currency pair is trading at the back of a relatively busy period in the EU market. On Wednesday, the German producer price index for November missed the expected (MoM) change of -0.3% with a change of -0.5%. The (YoY) equivalent also fell short of the expected change of -7.5% with a change of -7.9%. On the other hand, the GFK consumer confidence survey for January outshone the estimate of -27 with a reading of -25.1, while the EU’s preliminary consumer confidence survey for December beat -16.4 with a reading of -15.1.

Earlier in the week, the EU’s harmonised index of consumer prices for November missed the expected (MoM) change of -0.5% with a change of -0.6%. The (YoY) equivalent was in line with the estimate of 3.6%. The core harmonised index of consumer prices matched the (MoM) and (YoY) forecasts of 0.6% and 3.6%, respectively. In Switzerland, the trade balance for November beat the expectation of 3,500 million with a balance of 3,707 million.

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

Technically, the EUR/CHF currency pair appears to be trading within a descending channel formation in the 60-minute chart. The 14-hour RSI also seems to support a short-term bearish bias as it moves closer to oversold conditions.

Therefore, the bears will be looking to extend the current run of declines toward 0.9408 or lower to 0.9383. On the other hand, the bulls will be targeting potential rebounds at about 0.9460 or higher at 0.9485.

EUR/CHF Technical Analysis (the Daily Chart)

In the daily chart, the EUR/CHF currency pair also seems to be trading within a descending channel formation. The 14-day RSI also appears to be edging closer to the oversold levels, indicating a bearish bias.

Therefore, the bears will be targeting long-term profits at about 0.9336 or lower at 0.9229. On the other hand, the bulls will look to pounce for profits at about 0.9533 or higher at 0.9646.