The EUR/CHF currency pair on Friday pulled back from the current six-month highs of about $1.0100 to trade at about 1.0026. The currency pair appears to be trading within a descending channel formation in the 60-min chart.
The pair has now moved closer to the 100-hour moving average line. As a result, the currency pair appears to be trending 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 Friday, the EU Industrial production for November beat the (MoM) expectation of 0.5% with a change of 1%. The (YoY) equivalent also outshone the forecast of 0.5% with a change of 2%.
Elsewhere, Germany’s real GDP growth outperformed the expected change of 1.8% with a change of 1.9%. The EU trade balance for November also beat estimates on both the (MoM) and (YoY) basis.
Earlier in the week, the EU unemployment rate for November remained unchanged at 6.5% in line with expectations. On the other hand, Switzerland’s seasonally-adjusted unemployment rate for December edged lower to 1.9% (MoM), down from 2% in line with expectations. Germany’s Industrial production for November beat the (MoM) forecast but missed on a (YoY) basis.
EUR/CHF Technical Analysis (the 60-min Chart)
Technically, the EUR/CHF currency pair appears to be trading within a descending channel formation in the 60-min chart. This indicates a significant short-term bearish bias in the market sentiment.
Therefore, the bears will be looking to extend the current pullback towards 1.0002 or lower to 0.9979. On the other hand, the bulls will be targeting potential rebound profits at about 1.0046 or higher at 1.0069.
EUR/CHF Technical Analysis (the Daily Chart)
In the daily chart, the EUR/CHF currency pair appears to have recently completed an upward breakout from an ascending channel formation. This indicates a significant increase in the long-term bullish bias.
Therefore, the bulls will be looking to extend the current streak of gains toward 1.0125 or higher to 1.0260. On the other hand, the bears will be targeting potential pullback profits at about 0.9911 or lower at 0.9791.