The EUR/CHF currency pair on Friday pulled back off the current weekly highs to trade below 1.0850 after the EU CPI data. The currency pair appears to be on a major rebound after bottoming at around 1.0805 on Wednesday.

The currency pair has now surged to trade above the 100-hour moving average in the 60-min chart. Friday’s pullback pushed the pair back to the normal trading zone of the 14-hour RSI after surging to overbought conditions in the morning.

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 core CPI for June matched the (MoM) expectations of 0.3%. The (YoY) equivalent was also in line with the expected change of 0.9%. General CPI came in at 0.3% (MoM) in line with estimates. On Thursday, EU’s seasonally-adjusted industrial production for May missed the expected (MoM) change of -0.2% with -1%. Earlier in the week, Germany’s harmonized index of consumer prices for June matched the expected (YoY) change of 2.1%.

The Spanish CPI for June beat the expectations of 0.4% (MoM) and 2.6% (YoY) with 0.5% and 2.7%, respectively. The German, Italian and French CPIs, all came in line with expectations. In Switzerland, the producer and import prices for June grew by 0.3% (MoM) and 2.9% (YoY) compared to 0.8% and 3.2% in the previous period.

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

Technically, the EUR/CHF currency pair appears to have recently bounced off multi-month lows after this month’s massive plunge. The pair is now trading a few levels above the 23.60% fib level on the way up.

The bulls will be looking to ride the current rebound towards 38.20% and 50% fib levels at 1.0873 and 1.0894, respectively. On the other hand, the bears will target short-term pullbacks at around 1.0832 and 1.0810.

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 pair recently bounced back to avoid dropping to oversold conditions of the 14-day RSI.

The bears will be looking to extend the current declines towards 1.0782 or lower to 1.0715. On the other hand, the bulls will target long-term reversals at approximately 1.0918 or higher at 1.0987.