The EUR/CHF currency pair on Wednesday pulled back off the current weekly highs of about 0.9650 to trade below 0.9600. The currency pair appears to be trading within a sharply descending channel formation in the 60-min chart.

The currency pair has now plummeted to trade closer to the 100-hour moving average line. As a result, the pair appears to be trading closer 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 Wednesday, the Swiss SVME purchasing manager’s index for July missed the expected reading of 44 with a reading of 38.5. The 3-month SECO consumer climate for Q3 improved to -8 compared to the previous update of -13.

In the EU, Germany’s seasonally-adjusted unemployment rate for June fell to 5.6% from 5.7% in May, beating the expected rate of 5.7%. The unemployment change for the month also fell to -4k down from 28k in the previous update, ahead of the estimated change of 15k.

The HCOB Manufacturing PMI for July matched the expected reading of 38.8, unchanged from the previous update. Earlier in the week, the preliminary EU gross domestic product for Q2 outshone estimates on both the (QoQ) and (YoY)  basis. German retail sales for June beat on a (YoY) basis but missed the (MoM) forecast.

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

Technically, the EUR/CHF currency pair appears to be trading within a sharply descending channel formation in the 60-min chart. This indicates a strong short-term bearish bias in the market sentiment.

Therefore, the bears will be looking to stretch the current declines toward 0.9588 or lower to 0.9577. On the other hand, the bulls will be targeting profits at about 0.9607 or higher at 0.9618.

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 be targeting long-term profits at about 0.9565 or lower at 0.9524. On the other hand, the bulls will look to pounce on profits at about 0.9633 or higher at 0.9673.