On Wednesday, the EUR/CHF currency pair pulled back off the session highs of about 0.9301 to trade at about 0.9280. The currency pair trades within a descending channel formation in the 60-minute chart.

The currency pair has now plummeted to trade slightly below the 100-hour moving average line. Wednesday’s pullback prevented the currency pair from advancing into the overbought conditions of the 14-hour RSI.

EUR/CHF Fundamentals Overview

From a fundamental perspective, the EUR/CHF currency pair trades ahead of the relatively busy period in both the Swiss and the EU economic block markets. On Thursday, the Swiss National Bank will issue an update on the latest interest rate decision. The market expects a 25 basis point cut to 0.75% down from 1%.

Analysts also expect the European Central Bank to cut the base interest rate by 25 basis points to 3.15%, down from 3.4%. The deposit rate is expected to go lower to 3%, down from 3.25%.

Earlier in the week, Germany’s harmonised index of consumer prices for November remained unchanged at -0.7% (MoM), in line with estimates. The (YoY) equivalent also matched the forecasted rate of 2.4%, unchanged from the previous period. Elsewhere, the EU’s Sentix Investor Confidence for December edged lower to -17.5, down from -12.8 in November.

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 also supports a downward movement after pulling back to avoid rallying into overbought conditions.

Therefore, the bears will look to extend the current pullback towards 0.9257 or lower to 0.9235. On the other hand, the bulls will look to pounce on rebounds at about 0.9301 or higher at 0.9322.

EUR/CHF Technical Analysis (the Daily Chart)

In the daily chart, the EUR/CHF currency pair trades within a descending channel formation. The 14-day RS also supports a downward bias as it moves closer to the oversold conditions of the indicator.

Therefore, the bears will look to extend the current run of declines toward 0.9202 or lower to 0.9119. On the other hand, the bulls will look to pounce on profits at about 0.9366 or higher at 0.9439.