On Wednesday, the EUR/CHF currency pair pulled back from the session highs of about 0.9454 to trade at about 0.9440. The currency pair trades within a consolidative triangle formation in the 60-minute chart.
The pair continues to trade above the 100-hour moving average line. However, Wednesday’s pullback prevented the currency pair from advancing into the overbought conditions 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 Wednesday, the EU’sZEW Survey economic sentiment for January outperformed the expected reading of 16.9 with a reading of 18. Germany’s equivalent for the period missed the estimate of 15.3 with 10.3, while the German ZEW Survey for the current situation -93.1 with a reading of -90.4.
Earlier in the week, Germany’s producer price index for December missed the expected (MoM) change of 0.3% with a change of -0.1%. The (YoY) equivalent also fell short of 1.1% with a change of 0.8%.
Looking forward, traders will be waiting for the EU’s and Germany’s preliminary HCOB Manufacturing, Services and Composite PMI’s on Friday. Meanwhile, they will continue monitoring developments based on news from the on-going World Economic Forum at Davos, Switzerland.
EUR/CHF Technical Analysis (the 60-min Chart)
Technically, the EUR/CHF currency pair trades within an ascending triangle formation. However, the 14-hour RSI has recently pulled back to avoid rallying into the overbought conditions.
Therefore, the bears will look to stretch the current pullback towards 0.9425 or lower to 0.9411. On the other hand, the bulls will look to pounce on profits at about 0.9454 or higher at 0.9469.
EUR/CHF Technical Analysis (the Daily Chart)
In the daily chart, the EUR/CHF currency pair trades within an ascending channel formation. The 14-day RSI also supports a long-term bullish bias as it moves closer to the overbought conditions.
Therefore, the bulls will look to ride the current run of gains toward 0.9504 or higher to 0.9572. On the other hand, the bears will look to pounce n pullbacks at about 0.9374 or lower at 0.9299.