On Wednesday, the EUR/CHF currency pair pulled back off the session highs of about 0.9469 to trade at about 0.9408. The currency pair trades within an ascending channel formation in the 60-minute chart.

The pair has now rallied to trade a few levels above the 100-hour moving average line. However, Wednesday’s pullback 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 trades during a relatively busy period in the EU market. On Wednesday, the seasonally adjusted German industrial production for June exceeded the (MoM) forecast of 1% with a change of 1.4%, up from -2.5% in the preceding period. The (YoY) equivalent also posted an improved change of -4.1% compared to a change of -6.7% in the preceding period.

Elsewhere, imports and exports fell short of -1.5% and 2.8%, respectively with changes of -3.4% and 0.3%. On Tuesday, EU retail sales for June missed the expectation of -0.1% with a change of -0.3% (MoM). The (YoY) equivalent also fell short of 0.1% with a change of -0.3%.

The German factory orders for July exceeded expectations of 0.8% with a change of 3.9% (MoM). In Switzerland, the unemployment rate for June edged slightly higher to 2.5% up from 2.4% in May. Swiss retail sales for June missed the forecast of 0.5% with a change of -2.2%. 

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

Technically, the EUR/CHF currency pair trades within an ascending channel formation in the 60-minute chart. However, the 14-hour RSI has pulled back to avoid rallying into overbought conditions.

Therefore, the bears will look to extend the current pullbacks toward 0.9350 or lower to 0.9297. On the other hand, the bulls will look to ride the current rally towards 0.9469 or higher to 0.9520.

EUR/CHF Technical Analysis (the Daily Chart)

In the daily chart, the EUR/CHF currency pair trades within a descending channel formation. However, the 14-day RSI has recently bounced back to avoid descending into the oversold conditions.

Therefore, the bulls will look to stretch the current rebound towards 0.9603 or higher to 0.9801. On the other hand, the bears will look to extend the current declines toward 0.9707 or lower to 0.9003.