EUR/CHF Pulls Off Weekly Highs in Thin Holiday Trading

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The EUR/CHF currency pair on Tuesday pulled back off the current weekly highs in a thinly traded period as the market began to adapt to the holiday mood.  The pair topped 1.0899 early in the day but later pulled back to trade at around 1.0873.

The currency pair is now trading closer to the oversold boundary following today’s late pullback and this could set the tone for the next day of trading after the Christmas holiday.

EUR/CHF Fundamentals Overview

From a fundamental perspective, the EUR/CHF currency pair is trading thinly on Tuesday ahead of the Christmas day and boxing day celebrations. However, we will still witness some economic data trickling in from the EU and this could provide the pair with a basis for a rebound in the next trading day.

The German Import Price Index for November beat expectations of 0.4% (MoM) change with 0.5% while the (YoY) change improved to -2.1% from -3.5% beating the consensus estimate of -2.3%. 

Looking forward, traders will be waiting on Friday’s Spanish retail sales for November and the Italian unemployment rate as the EU delivers the latest economic bulletin. 

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

Technically, the EUR/CHF currency pair appears to be trading within a descending wedge, which indicates a short-term bearish bias in the market sentiment. The pair has dropped below the current level of the 100-hour and the 200-hour SMA lines, which again supports the bearish case.

Therefore, the bears will be targeting short-term profits at around 1.0861 while the bulls will hope for a quick rebound towards 1.0886 or higher at 1.0899.

EUR/CHF Technical Analysis (the Daily Chart)

In the daily chart, the EUR/CHF currency pair continues to trade within a descending channel, which again illustrates the case of a long-term bearish bias in the market sentiment. The currency pair has recently dropped below the 100-day SMA and is edging closer to the oversold boundary line which could trigger the next rebound.

Therefore, the bulls will be targeting long-term profits at around 1.1042, 1.1108 or higher at 1.1158. On the other hand, the bears will hope that the pair can continue to drop further towards 1.0817, 1.0776, 1.0728 or lower at 1.0649.

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