On Wednesday, the EUR/CHF currency pair extended Tuesday’s gains from the current week’s low of 0.9345 to trade at 0.9382. The currency pair trades within an ascending channel formation in the 60-minute chart.

The pair has now advanced to trade a few levels above the 100-hour moving average line. However, the currency pair pulled back slightly to avoid rallying into the overbought levels of the 14-hour RSI.

EUR/CHF Fundamentals Overview

From a fundamental perspective, the EUR/CHF currency pair trades during a relatively busy period in the EU market. In Switzerland, the ZEW survey expectations for August improved to 12.1, up from the previous month’s equivalent of 10.

In Germany, the gross domestic product for Q2 outperformed the (QoQ) expectation of 0.2%, with a change of 0.3%. The (YoY) equivalent also beat the forecasted change of 0.9%, with a change of 1%. 

Germany’s IFO business climate for August also exceeded the forecasted reading of 87.2, with a reading of 88.8, up from the previous month’s equivalent of 86.7. The IFO for the current assessment for the month also improved to 88.5, up from 86.5, beating the forecast of 87, while the IFO expectations beat the estimate of 87.5, with a reading of 89.1, up from 86.8.

Looking forward, traders will be waiting for the German employment change and the unemployment rate for July on Friday, alongside the EU economic bloc’s August business climate and consumer confidence data. 

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

Technically, the EUR/CHF currency pair trades within an ascending channel formation on the 60-minute chart. However, the 14-hour RSI has recently pulled back to recover from overbought conditions.

Therefore, the bears will look to stretch the current pullback towards 0.9363 or lower to 0.9345. On the other hand, the bulls will look to pounce on profits at about 0.9402 or higher at 0.9420.

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

In the daily chart, the EUR/CHF currency pair also trades within an ascending channel formation. However, the 14-day RSI has recently pulled back to avoid rallying into overbought conditions.

Therefore, the bears will look to extend the latest pullback towards 0.9325 or lower to 0.9264. On the other hand, the bulls will look to pounce on profits at about 0.9444, or higher at 0.9503.