The EUR/CHF currency pair on Friday extended its current pullback to trade at around 1.0742 after the ECB chose to keep the base interest rate unchanged at 0%. The currency pair made a bullish breakout off a consolidative bearish triangle at the start of the week to rally towards 1.0800 before pulling back on Thursday.

The pair has now moved closer to the 100-hour SMA in the 60-min chart. It so also edging 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 Thursday, the European Central bank decided to keep the base interest rate unchanged and in line with expectations at 0.0%. The deposit rate was also retained at -0.5%. Earlier in the week, the seasonally adjusted industrial production for May missed the (MoM) expectation of 15% with 12.4%. The W.D.A industrial production missed -20% with -20.9% while the ZEW survey economic sentiment came short of 78.1 with 59.6.

On Friday, the EU CPI for June matched both the (MoM) and (YoY) expectations of 0.3%. The core CPI was also in line with the (MoM) expectation of 0.3% and (Yoy) estimate of 0.8%. Construction output W.D.A for May posted a change ofo -11.9%, which was a huge improvement from the previous period’s change of -31%. The seasonally adjusted construction output improved by 27.9% versus a decline of 18.3% in the previous period.

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

Technically, the EUR/CHF currency pair appears to have recently made a bullish breakout off a consolidative bearish triangle. This indicates a short-term bullish bias in the market sentiment. However, that bull-run appears to have run out of steam following Thursday’s and Friday’s pullback.

Therefore, the bulls will be looking to retake control of the pair by targeting profits at around 1.0768 or higher at 1.0790. On the other hand, the bears will look to pounce for profits at around 1.0722 or lower at 1.0690.

EUR/CHF Technical Analysis (the Daily Chart)

In the daily chart, the EUR/CHF currency pair appears to have recently rebounded off the 100-day SMA. It rallied to cross the 200-day SMA before edging lower to pin next to it. It is now approaching overbought levels of the 14-day RSI.

The bulls will be looking to extend the current bull-run towards 1.0836 or higher to 1.0962. On the other hand, the bears will look to pounce for pullback profits at around 1.0637 or lower at 1.0507.