The EUR/CHF currency pair on Thursday pulled back to trade at the current weekly lows of about 1.0942 after news that the EU is planning to taper debt. The currency pair continues to trade within a sideways channel formation in the 60-min chart. 

The pullback pushed the currency pair below the 100-hour moving average. It is now trading closer to the oversold levels of the 14-hour RSI after pulling back off overbought levels earlier in the day. 

EUR/CHF Fundamentals Overview

From a fundamental perspective, the EUR/CHF currency pair is trading at the back of a relatively busy period in both markets. Reports have emerged that the EU may be planning to reduce QE in the coming months. On Thursday, the Swiss Trade Balance for April missed the expectation of 4253M with 3837M. Exports and imports fell slightly compared to the previous month while the employment level for Q1 came in 5.101M compared to the previous reading of 5.135M. On Wednesday, the ZEW Survey expectations for May came in better than expected 72.2 versus 64.7.

In the EU, Germany’s consumer confidence for June missed the expectation of -5.2 with -7. On the other hand, Italy’s business confidence for May outperformed 106.4 with 110.2 while consumer confidence beat 104.4 with 110.6. Earlier in the week, France’s business climate in Manufacturing for May beat 106 with 107. Germany’s Q1 GDP missed both the (QoQ) and (YoY) expectations of -1.7% and -3% with -1.8% and -3.1%, respectively. The IFO business climate and current assessment beat 98.2 and 95.5 with 99.2 and 95.7, respectively. On the other hand, IFO expectations for May beat 101.4 with 102.9.

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

Technically, the EUR/CHF currency pair appears to be trading within a sideways channel formation in the 60-min chart. It has recently pulled back to trade below the 100-hour SMA. It is now trading within the normal trading zone of the 14-hour RSI.

The bulls will be targeting short-term rebound profits at around 1.0964 or higher at 1.0985. On the other hand, the bears will look to pounce at around 1.0924 or lower at 1.0900.

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 bearish bias in the market sentiment. The pair is now pinned just below the 100-day moving average.

The bears will look to extend the current bearish run by targeting profits at around 1.0863 or lower to 1.0777. On the other hand, the bulls will target long-term profits at around 1.1006 or higher at 1.1100.