The EUR/CHF currency pair on Wednesday pulled back off the current weekly highs of about 0.9577 to trade at about 0.9564. The currency pair appears to have completed a downward breakout from a descending channel formation.

The pair continues to trade slightly above the 100-hour moving average line despite the pullback. However, Wednesday’s pullback pushed the pair back to the normal trading zone 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 Wednesday, EU retail sales for July outperformed the expected (YoY) change of -1.2% with a change of -1%. The (MoM) equivalent matched the forecasted change of -0.2%. The seasonally adjusted German factory orders for July missed the expectation of -4% with a change of -11.7% (MoM). The (YoY). 

Earlier in the week, the EU’s producer price index for July beat the (MoM) expectation of -0.6% with a change of -0.5%. The (YoY) equivalent was in line with the forecasted change of 7.6%. The HCOB’s composite PMI for August missed the expected reading of 47 with a reading of 46.7. The services PMI also fell short of 48.3 with a reading of 47.9.

In Switzerland, the seasonally adjusted gross domestic product for Q2 missed the expected (QoQ) change of 0.1% with a change of 0%. The (YoY) equivalent was in line with the estimate of 0.5%.

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

Technically, the EUR/CHF currency pair appears to have recently completed a downward breakout from an ascending channel formation. The hourly MACD also seems to be running out of momentum, indicating a potential bearish reversal.

Therefore, the bears will be targeting potential pullback profits at about 0.9551 or lower at 0.9538. On the other hand, the bulls will look to extend the current rally towards 0.9577 or higher to 0.9589.

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 Daily MACD seems to be lacking enough momentum to support the current trend.

Therefore, the bulls will be targeting potential rebounds at about 0.9607 or higher at 0.9650. On the other hand, the bears will look to pounce on profits at about 0.9514 or lower at 0.9469.