The EUR/CHF currency pair on Friday traded sideways after finding strong trendline resistance in the 60-min chart. However, the currency pair remains pinned within the descending channel formation, indicating a slight bearish bias.
The pair trades several levels above the 100-hour moving average line, despite the recent pullback. Moreover, it remains pinned centrally in the 14-hour RSI, suggesting the current pattern formation could continue.
EUR/CHF Fundamentals Overview
From a fundamental perspective, the EUR/CHF currency pair is trading at the back of a relatively busy period in both markets. On Thursday, the European Central Bank voted to keep the base interest rate unchanged at 0% while the base deposit rate still stands at -0.5%.
Earlier in the week, the ZEW economic sentiment for April missed the expectation of 0.2 with -43, while Germany’s harmonised index of consumer prices was in line with expectations at 7.6% Germany. Economic sentiment and current situation indices outperformed expectations.
In Switzerland, the producer price and import prices for March outshone the (MoM) expectation of 0% with a change of 0.8%. The (YoY) equivalent also beat the expected change of 4.9% with a change of 6.1%.
EUR/CHF Technical Analysis (the 60-min Chart)
Technically, the EUR/CHF currency pair seems to be trading within a gently descending channel formation in the 60-min chart. This indicates a slight short-term bearish bias in the market sentiment.
Therefore, the bears will be targeting potential downward channel breakout profits at about 1.0173, or lower at 1.0159. On the other hand, the bulls will target extended rebounds at about 1.0198, or higher at 1.0210.
EUR/CHF Technical Analysis (the Daily Chart)
In the daily chart, the EUR/CHF currency pair seems to be trading within a sharply descending channel formation. This indicates a strong long-term bearish bias in the market sentiment.
Therefore, the bulls will be looking to stretch the recent rebound towards 1.0254 or higher to 1.0332. On the other hand, the bears will be targeting long-term profits at about 1.0125, or lower at 1.0037.