The EUR/CHF currency pair on Friday surged to set new weekly highs of about 1.1000 following the release of the EU inflation data. The currency pair has been trading in a consolidative sideways channel and continues to enjoy strong support around the 1.0990 level, which also backed by the 100-hour SMA.
The currency pair appears to be enjoying a relative bullish bias following the formation of an inverted head-and-shoulders reversal pattern in the middle of this month.
EUR/CHF Fundamentals Overview
From a fundamental perspective, the EUR/CHF currency pair is trading at the back of a relatively slow period with a few economic events and data impacting the market. On Thursday, the preliminary EU Harmonized Index of Consumer Prices for November came in line with expectations of 1.2% up from the previous figure of 0.9% on a (YoY) basis.
And on Friday, the preliminary EU core Consumer Price Index for November beat the expectation of 1.2% with 1.3% on a (YoY) basis up from 1.1$ in the previous period while the preliminary general CPI which increased from 0.7% to 1%, outperformed the expected change of 0.9%.
On the other hand, the Swiss ZEW Survey Expectations for November improved to -3.9 from -30.5 in the previous period in the process beating the expectation of -30.5. And on Thursday, the Swiss GDP for Q3 beat the expectation of 0.2% (QoQ) and 0.8% (YoY) with 0.4% and 1.1% respectively.
EUR/CHF Technical Analysis (the 60-min Chart)
Technically, the EUR/CHF currency pair appears to be trading in a consolidative sideways movement with a slight bullish bias. The pair is currently perched above the 100-hour and the 200-hour SMA lines in the 60-min chart and this will provide more support for bullish sentiment.
Therefore, the bulls will be targeting short-term profits at around 1.1011 or higher at 1.1022 going into the weekend. On the other hand, the bears will hope for an immediate pullback towards 1.0990 or lower at 1.0980.
EUR/CHF Technical Analysis (the Daily Chart)
In the daily chart, the EUR/CHF currency pair continues to trade within a descending channel, which indicates a bearish sentiment in the long-term trading market. However, the recent rebound off multi-year lows of 1.0819 appears to have turned the tables in favor of the bulls.
Therefore, the bulls will be targeting long-term profits at around 1.1057, 1.1108 or higher at 1.1158. On the other hand, the bears will hope for a major pullback as they seek to retain control with profit targets at 1.0958, 1.0843 or lower at 1.0819.