On Wednesday, the EUR/CHF currency pair pulled off the session highs of about 0.9672 to trade at about 0.9600. The currency pair trades within a descending channel formation in the 60-minute chart. 

The pair has now plummeted to trade several levels below the 100-hour moving average line. As a result, the currency pair has since fallen deep into 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 Wednesday, the EU’s preliminary HCOB Services PMI for July missed the expectation of 53 with a reading of 51.9. The Manufacturing PMI for the period also fell short of 46.1 with a reading of 45.6, while the Composite PMI missed 51.1 with a reading of 50.1.

In Germany, the preliminary HCOB Services PMI for July missed the expected reading of 53.1 with a reading of 52, the preliminary HCOB Manufacturing PMI for the period also fell short of 44 with a reading of 42.6, while the Composite PMI failed to match the estimate of 50.7 with a reading of 48.7. Elsewhere, the Gfk German consumer confidence survey for August outshone the forecasted reading of -21 with a reading of -18.4.

Looking forward, traders will be waiting for German IFO Business Climate, the current assessment and expectations for July on Thursday.

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 has also plummeted to trade deep into the oversold levels of the indicator.

Therefore, the bears will be targeting extended declines at about 0.9562 or lower at 0.9520. On the other hand, the bulls will look to pounce on rebounds at about 0.9635 or higher at 0.9672.

EUR/CHF Technical Analysis (the Daily Chart)

In the daily chart, the EUR/CHF currency pair has completed a downward breakout from an ascending channel formation. The 14-day RSI has also pulled back to move closer to oversold conditions. 

Therefore, the bears will be targeting extended pullbacks at about 0.9486 or lower at 0.9369. On the other hand, the bulls will look to pounce on profits at about 0.9715 or higher at 0.9820.