The EUR/CHF currency pair on Wednesday pulled back to trade at a new 3-month low of about 1.0685 amid increased bearish pressure. The pair continues to trade within a highly volatile descending wedge in the 60-min chart.

Wednesday’s pullback pushed the currency pair to oversold levels of the 14-hour RSI. This could trigger a short-term rebound going into the tail end of the week. The broader picture shows that the bulls retain long-term control.

EUR/CHF Fundamentals Overview

From a fundamental perspective, the EUR/CHF currency pair is trading at the back of a relatively quiet period in both markets. There has not been a significant amount of economic data released this week bar a statement from the Swiss National Bank Chairman and the ECB bank lending survey. 

On Tuesday, the EU private loans beat the expected (YoY) change of 3% with 3.1%. The M3 Money supply for September also outperformed the expected (YoY) change of 9.6% with a change of 10.4%. Traders will be looking forward to Thursday’s ECB interest rate decision ahead of GDP data and CPI on Friday.

In Switzerland, the ZEW-survey expectations for October missed the expected reading of 35.2 with a reading of 2.3. Traders will be looking forward to Friday’s retail sales for September and KOF leading indicator for October. 

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

Technically, the EUR/CHF currency pair appears to be trading within a highly volatile descending wedge in the 60-min chart. This indicates a significant short-term bearish bias in the market sentiment.

The bulls will be targeting short-term profits at around 1.0707 or higher at 1.0720. On the other hand, the bears will be looking to pounce on profits at around 1.0681 or lower at 1.0670.

EUR/CHF Technical Analysis (the Daily Chart)

In the daily chart, the EUR/CHF currency pair appears to be trading within a slightly ascending channel. This indicates a slight long-term bias in the market sentiment. The currency pair is pegged between 50% and 61.80% fib levels on the way down. 

The bears will look to extend the current pullback towards 61.80% and 76.40% Fib levels at 1.0661 and 1.0602, respectively. On the other hand, the bulls will look to pounce at around 38.20% and 23.60% fib levels at 1.0758 and 1.0820, respectively.