The EUR/CHF currency pair on Wednesday pulled back off the session highs of about 0.9712 to trade at about 0.9707. The currency pair continues to trade within an ascending channel formation in the 60-minute chart.

Wednesday’s late pullback prevented the currency pair from advancing above the 100-hour moving average line. However, the currency pair continues to trade closer to the overbought 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 EU’s harmonised index of consumer prices for March matched the (MoM) and (YoY) expectations of 0.8% and 2.4%, respectively, unchanged from the previous period.

The core harmonised index of consumer price for the period was also in line with the estimate of 2.9% (YoY( unchanged from the previous period, with the (MoM) equivalent also remaining steady with a change of 1.1%.

Earlier in the week, the EU’s ZEW survey for economic sentiment for April outperformed the expectation of 37.2 with a reading of 43.9. On the other hand, the German ZEW survey for economic sentiment for the period beat 35.1 with a reading of 42.9.

Elsewhere, Germany’s wholesale price index for March exceeded the forecasted (MoM) change of 0.1% with a change of 0.2%. In Switzerland, the producer and import prices for March delivered (MoM) and (YoY) changes of 0.1% and -2.1%, respectively.

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

Technically, the EUR/CHF currency pair appears to be trading within an ascending channel formation in the 60-minute chart. The 14-hour RSI has also advanced to trade closer to overbought conditions.

Therefore, the bulls will be looking to extend the current rally towards 0.9721 or higher to 0.9736. On the other hand, the bears will look to pounce on potential pullbacks at about 0.9691 or lower at 0.9675.

EUR/CHF Technical Analysis (the Daily Chart)

In the daily chart, the EUR/CHF currency pair appears to be trading within a descending channel formation. The 14-day RSI also seems to support a long-term bearish bias after pulling back to avoid entering overbought conditions.

Therefore, the bears will be targeting extended pullbacks at about 0.9630 or lower at 0.9566. On the other hand, the bulls will look to pounce on rebounds at about 0.9774 or higher at 0.9838.