The EUR/CHF currency pair on Wednesday pulled back off the session highs of about 0.9672 to trade at about 0.9632. The currency pair appears to be trading within a descending channel formation in the 60-min chart.

The pair has now plummeted to trade a few levels below the 100-hour moving average line. As a result, the currency pair seems to be 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 is trading at the back of a relatively busy period in the EU market. On Tuesday, the preliminary EU gross domestic product for Q3 matched the (QoQ) and (YoY) expectations of -0.1% and 0.1%, respectively. The preliminary employment change for Q3 exceeded the (YoY) expectation of 1.2% with a change of 1.4%. Germany’s ZEW survey current situation for November missed the estimate of -76.7 with a reading of -79.8.  The ZEW survey economic sentiment for the period outshone the forecast of 5 with 9.8.

On Wednesday, the seasonally adjusted industrial production for September missed the (MoM) expectation of -0.7% with a change of -1.1%. On the other hand, the (YoY) equivalent fell short of -6.3% with a change of -6.9%. In Switzerland, the producer import prices for October increased by 0.2% (MoM) compared to a change of -0.1% in the previous update. The (YoY) equivalent posted a change of -0.9% versus the previous period’s equivalent of -1%.

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-min chart. The hourly MACD also seems to support a bearish bias after completing a downward crossover.

Therefore, the bears will be looking to extend the current run of declines toward 0.9614 or lower to 0.9590. On the other hand, the bulls will look to pounce on rebounds at about 0.9653 or higher at 0.9672.

EUR/CHF Technical Analysis (the Daily Chart)

In the daily chart, the EUR/CHF currency pair appears to be trading within an ascending channel formation. The daily MACD also seems to support a long-term bullish bias after completing an upward crossover.

Therefore, the bulls will be looking to stretch the current rally towards 0.9684 or higher to 0.9738. On the other hand, the bears will look to pounce on pullbacks at about 0.9581 or lower at 0.9527.