The EUR/CHF currency pair on Friday pulled back off the session highs of about 1.0032 to trade at about 1.0000 following the latest round of data. The currency pair continues to trade within a sideways channel formation in the 60-min chart.
The pair has now dropped to trade below the 100-hour moving average line. As a result, the pair now seems to be trading closer to 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 Friday, the EU M3 Money Supply for December missed the (YoY) expectation of 4.6% with a change of 4.1%. On Thursday, Germany’s IFO current assessment for January also missed the forecast of 95 with a reading of 94.1, while the IFO expectations for the month outshone the estimate of 85 with a reading of 86.4.
Earlier in the week, the EU’s preliminary S&P Global Composite PMI for January beat the expectation of 49.8 with a reading of 50.2, while Germany’s S&P Global/BME Manufacturing PMI for the period missed 47.9 with a reading of 47.
In Switzerland, the ZEW survey expectations for January outperformed the expected reading of -47.6 with a reading of -40.
EUR/CHF Technical Analysis (the 60-min Chart)
Technically, the EUR/CHF currency pair appears to be trading within a sideways channel formation in the 60-min chart. This indicates a lack of clear directional bias in the market sentiment.
Therefore, the bears will be targeting channel breakout profits at about0.9988 or lower at 0.9971. On the other hand, the bulls will look to pounce on potential rebounds at about 1.0032 or higher at 1.0049.
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. This indicates a significant long-term bullish bias in the market sentiment.
Therefore, the bulls will be looking to extend the current run of gains toward 1.0096 or higher to 1.0177. On the other hand, the bears will be targeting long-term pullbacks at about 0.9921 or lower at 0.9826.