The EUR/CHF currency pair on Friday made an attempt to recover from Wednesday’s plunge rallying to top 1.0900 before pulling back late on. The pair bottomed at the current 5-week lows of about 1.0866 earlier this week but on Friday rallied to top 1.0900 before pulling back to settle at around 1.0879.

The currency pair has been trading under intense bearish pressure since the middle of the month and today’s pullback puts it on course to maintain the current trend through next week.

EUR/CHF Fundamentals Overview

From a fundamental perspective, the EUR/CHF currency pair is trading at the back of a busy period in the EU. On Monday, the German Markit Manufacturing and Composite PMIs missed the expectations of 44.5 and 49.9 with 43.4 and 49.4 respectively while the EU PMI Composite narrowly came short of 50.7 expected with 50.6.

And on Wednesday, the EU Consumer Price Index for November came in line on all counts including core CPI. However, Construction Output for October (YoY) missed the expected change of 2.4% with 0.3%. In addition, the latest Consumer Confidence data for December also did not meet the expectation of 7 after posting -8.1.

On the other hand, the SNB maintains caution on interest rates still in negative territory and this appears to be paying off based on the latest trade balance report. On Thursday, the SNB reported a Trade Balance of 3915M, which was better than the expected level of 3299M.

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

Technically, the EUR/CHF currency pair appears to be trading in a descending wedge, which indicates a short-term bearish bias in the market sentiment. The currency pair is pegged several levels below the current position of the 100-hour and the 200-hour SMA lines.

Therefore, the bears will be targeting short-term profits at around 1.0866 while the bulls will be targeting the next rebound for opportunities at around 1.0890 or higher at 1.0900.

EUR/CHF Technical Analysis (the Daily Chart)

In the daily chart, the EUR/CHF currency pair appears to be trading in a sideways channel amid an attempt to trigger a reversal following the May-September plunge. The extended trend also appears to indicate that while the bulls might be attempting to retake control in the long-term, the bears are still firmly in control. 

Therefore, the bears will be targeting long-term profits at around 1.0817, 1.0776 or lower at 1.0728. On the other hand, the bulls will be looking to pounce for profits at around 1.0997, 1.1053, or higher at 1.1108.