The EUR/CHF currency pair on Wednesday pulled back off session highs of about 0.9804 to trade at about 0.9785. The currency pair continues to trade within an ascending channel formation in the 60-minute chart.
The currency pair remains a few levels above the 100-hour moving average line despite the pullback. Wednesday’s pullback also pushed the pair back within the normal range of trading in 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 unemployment rate for February missed the expected rate of 6.4% with a rate of 6.5%, unchanged from the previous update.
The preliminary harmonised index of consumer prices for March also fell short of the forecasted (YoY) forecast of 2.6% with a change of 2.4%. The core harmonised index of consumer prices for the period also missed the estimated (YoY) change of 3% with a change of 2.9%.
Earlier in the week, Germany’s preliminary consumer price index for March missed the expected (MoM) change of 0.6% with a change of 0.4%. The (YoY) equivalent was in line with the estimate of 2.2%.
On the other hand, the preliminary harmonised index of consumer prices missed both the (MoM) and (YoY) expectations of 0.7% and 2.4%, respectively with changes of 0.6% and 2.3%. In Switzerland, retail sales for February missed the expectation of 0.4% with a (YoY) change of -0.2%. Traders will be looking forward to the Swiss CPI on Thursday.
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. However, the 14-hour RSI has recently pulled back to recover from overbought conditions.
Therefore, the bears will be targeting extended pullbacks at about 0.9766 or lower at 0.9747. On the other hand, the bulls will look to pounce on rebounds at about 0.9804 or higher at 0.9823.
EUR/CHF Technical Analysis (the Daily Chart)
In the daily chart, the EUR/CHF currency pair also appears to be trading within an ascending channel formation. The 14-day RSI has also rallied to trade closer to the overbought conditions, supporting a bullish bias.
Therefore, the bulls will be targeting long-term profits at about 0.9877 or higher at 0.9981. On the other hand, the bears will look to pounce on potential pullbacks at about 0.9688 or lower at 0.9576.