On Wednesday, the EUR/CHF currency pair pulled back from the session highs of about 0.9544 to trade at about 0.9507. The currency pair trades within a descending channel formation in the 60-minute chart.

The pair continues to trade below the 100-hour moving average line. As a result, the currency pair is on the verge of entering 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 Tuesday, Germany’s IFO business climate for March missed the expectation of 86.8 with a reading of 86.7. The IFO expectations for the month also fell short of 87.9 with a reading of 87.7, while the IFO for the current situation beat the estimate of 85.5 with a reading of 85.7. 

Earlier in the week, the preliminary German HCOM Manufacturing PMI for March outperformed the expectation of 47.7 with a reading of 48.3. The preliminary HCOB Services PMI for the period missed the forecast of 51.4, with a reading of 50.2, while the composite PMI fell short of 51.2 with a reading of 50.9. On the other hand, the EU’s preliminary HCOB manufacturing PMI for the period beat 85.5 with 85.7, while the Services PMI missed 87.9 with 87.7.

In Switzerland, the ZEW survey expectations for March came in at -10.7, down from the previous update of 3.4.

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

Technically, the EUR/CHF currency pair trades within a descending channel formation in the 60-minute chart. The 14-hour RSI also supports a bearish bias as it moves closer to oversold conditions.

Therefore, the bears will look to extend the current decline towards 0.9486 or lower to 0.9467. On the other hand, the bulls will look to pounce on rebounds at about 0.9526 or higher at 0.9544.

EUR/CHF Technical Analysis (the Daily Chart)

In the daily chart, the EUR/CHF currency pair trades within an ascending channel formation. However, the 14-day RSI has recently pulled back to avoid rallying into overbought conditions.

Therefore, the bears will look to extend the current downward movement towards 0.9432 or lower to 0.9337. On the other hand, the bulls will look to pounce on profits at about 0.9574 or higher at 0.9660.