The EUR/CHF currency pair on Tuesday pulled back off the current weekly highs of about 0.9902 to trade at about 0.9877. The currency pair continues to trade above a descending channel formation after completing an upward breakout.

Tuesday’s pullback pushed the currency pair back toward the 100-hour moving average line in the 60-min chart. This prevented the currency pair from ascending into 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 both markets. On Tuesday, Germany’s preliminary S&P Global/BME composite PMI for February beat the expected reading of 50.4 with a reading of 51.1. On the other hand, Manufacturing PMI for the period missed the estimate of 47.8 with a reading of 46.5, while the Services PMI outshone the forecast of 51 with a reading of 51.3.

Elsewhere, the EU’s preliminary S&P Global Composite PMI for February beat the estimated reading of 50.6 with a reading of 52.3. The Manufacturing PMI missed 49.3 with a reading of 48.5 while the Services PMI beat 51 with 53.

In Switzerland, Trade Balance for January beat the expectation of 3,448 million with a reading of 5,078 million. On the other hand, imports increased to 24,115 million up from 20,736 million in the previous period, while exports rose to 19,037 million compared to a reading of 17,969 million previously.

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

Technically, the EUR/CHF currency pair appears to have recently completed an upward breakout from a descending channel formation in the 60-min chart. This indicates an abrupt change in the market sentiment from bearish to bullish.

Therefore, the bulls will be looking to stretch the current rebound towards 0.9889 or higher to 0.9902. On the other hand, the bears will be targeting pullbacks at about 0.9863 or lower at 0.9849.

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. This indicates a significant long-term bearish bias in the market sentiment.

Therefore, the bears will e looking to stretch the current run of declines toward 0.9795 or lower to 0.9724. On the other hand, the bulls will be targeting rebounds at about 0.9955 or higher at 1.0029.