The EUR/CHF currency pair on Friday declined to trade closer to the current weekly lows after the latest round of the EU CPI. The currency pair continues to trade within a descending channel formation in the 60-min chart.

The currency pair has now dropped several levels below the 100-hour moving average, pushing it closer to the oversold conditions of the 14-hour RI. Therefore, the pair could be about to experience a technical rebound.

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, Germany’s producer price index for November missed both the (MoM) and (YoY) expectations of 1.4% and 19.8%, respectively, with 0.8% and 19.2%. 

The business climate, current assessments, and expectations for December also failed to match market expectations. On the other hand, the EU general and core consumer price index for November missed the expectations of 0.1% and 0.5%, respectively, with 0.0% and 0.4%. The (YoY) equivalents were in line with expectations.

In Switzerland, the Swiss National Bank decided to keep the base interest rate unchanged at -0.75%. Earlier in the week, the Swiss producer import prices for November beat the expected (MoM) change of 0.2% with 0.5%. On the other hand, the (YoY) equivalent outperformed the forecast of 4.9% with 5.8%.

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

Technically, the EUR/CHF currency pair seems to be trading within a descending channel formation in the 60-min chart. As a result, the currency pair has fallen to trade closer to the oversold conditions of the 14-hour RSI.

Therefore, the bulls will be targeting potential rebound profits at about1.0412, or higher at 1.0425. On the other hand, the bears will target extended declines at about 1.0391, or lower at 1.0379.

EUR/CHF Technical Analysis (the Daily Chart)

In the daily chart, the EUR/CHF currency pair seems to be trading with a slightly ascending channel formation. This indicates an attempt by the bulls to take control of the pair in the long term.

Therefore, they will target extended rebound profits at about 1.0445, or higher at 1.0493. On the other hand, the bears will be looking to pounce for long-term profits at about 1.0364 or lower at 1.0317.