The EUR/CHF currency pair on Thursday pulled off the current weekly highs of about 0.9699 to trade at about 0.9651 after the latest round of EU data. The currency pair now seems to have completed a downward breakout from an ascending channel formation.

The pullback pushed the currency pair to trade below the 100-hour moving average line in the 60-min chart. However, it seems to have found support at 0.9650, which prevented it from descending 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 Thursday, the harmonised index of consumer prices (HICP) for the EU region for July matched the expected (MoM) change of 0.1% with 0.1%. The (YoY) equivalent was also in line with the expectation of 8.9%.

The HICP ex-food, energy and air transportation also matched the (MoM) forecast of -0.2% with -0.2%, while the (YoY) equivalent was in line with the expectation of 4%. Earlier in the week, the preliminary EU gross domestic product for Q2 missed the (QoQ) expectation of 0.7% with 0.6%. The (YoY) equivalent also came short of 4% with 3.9%.

In Switzerland. Producer and import prices for July missed the expected (MoM) change of 0.7% with a change of -0.1%. On the other hand, the (YoY) growth rate of 6.3%, was lower than the expected growth of 6.7%. Elsewhere, exports, imports and trade balance for July all declined from the previous period.

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

Technically, the EUR/CHF currency pair seems to have recently completed a downward breakout from an ascending channel formation in the 60-min chart. This indicates an attempt by the bears to take control of the pair.

Therefore, they will be looking to extend the current declines toward 0.9631 or lower to 0.9604. On the other hand, the bulls will target potential rebounds at about 0.9673, or higher at 0.7699.

EUR/CHF Technical Analysis (the Daily Chart)

In the daily chart, the EUR/CHF currency pair seems to be trading within a descending channel formation. This indicates a significant long-term bearish bias in the market sentiment.

Therefore, the bears will be targeting long-term profits at about 0.9492, or lower at 0.9311. On the other hand, the bulls will target potential rebounds at about 0.9796, or higher at 0.9955.