The EUR/CHF currency pair on Friday spiked to trade at a new weekly high of about 0.9667 after bottoming at 0.9450. The currency pair continues to trade within a sharply ascending channel formation in the 60-min chart.

The pair has now rallied to trade several levels above the 100-hour moving average line. As a result, the currency pair has advanced to trade deep into the overbought conditions 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 market sentiment. On Friday, the preliminary EU harmonised index of consumer prices (HICP) for September beat the expectation of 9.6% with 10% (YoY). On the other hand, the (MoM) equivalent matched the forecast of 1.2%. The HICP ex-food, energy, alcohol and tobacco outshone the expectation of 4.7% with a change of 4.8% (YoY), while the (MoM) equivalent was in line at 1%. The EU unemployment rate for August also came in line with the forecast of 6.6%.

Elsewhere, Germany’s preliminary CPI and HICP for September outperformed expectations on all counts, while the seasonally adjusted unemployment rate for September was in line at 5.5%. In Switzerland, the retail sales for August missed the (YoY) expectation of 3.4% with a change of 3%. The KOF leading indicator beat the forecasted reading of 84.5% with a reading of 93.8. Earlier in the week, the Swiss ZEW survey expectations for September missed -48.5 with a reading of -69.2.

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

Technically, the EUR/CHF currency pair seems to be trading within a sharply ascending channel formation in the 60-min chart. This indicates a strong short-term bullish bias in the market sentiment.

Therefore, the bulls will be looking to extend the current gains toward 0.9695 or higher to 0.9730. On the other hand, the bears will be looking to pounce on profits at about 0.9637 or lower at 0.9604.

EUR/CHF Technical Analysis (the Daily Chart)

In the daily chart, the EUR/CHF currency pair seems to have recently completed an upward breakout from a descending channel formation. This indicates an attempt by the bulls to take control of the pair.

Therefore, the bulls will be targeting long-term profits at about 0.9782 or higher at 0.9930. On the other hand, the bears will look to pounce on pullbacks at about 0.9566 or lower at 0.9430.