The EUR/CHF currency pair on Thursday pulled back off the session highs of about 1.1000 to trade at about 1.0947. The currency pair appears to have completed a downward breakout from an ascending channel formation in the 60-minute chart.
The pair has now fallen to trade next to the 100-hour moving average line. As a result, the currency pair appears to be moving closer to the oversold levels of the 14-hour RSI.
EUR/USD Fundamentals Overview
From a fundamental perspective, the EUR/USD currency pair is trading at the back of a relatively busy period in both markets. On Thursday, the US consumer price index for December outperformed the expected (MoM) change of 0.2% with a change of 0.3%. The (YoY) equivalent also beat the forecasted change of 3.2% with a change of 3.4%.
On the other hand, the consumer price index ex-food and energy for the period beat 3.8% with a (YoY) change of 3.9%, while the (MoM) equivalent was in line with the estimate of 0.3%. Elsewhere, the initial jobless claims for the week ending January 5 outshone the forecast of 210k with a claim count of 202k.
In the EU, Germany’s seasonally adjusted industrial production for November missed the expected (MoM) change of 0.2% with a change of 0.7%. The seasonally adjusted factory orders for the period also fell short of the (MoM) forecast of 1% with a change of 0.3%, while exports and imports beat 0.3% and 0.2%, respectively with changes of 3.7% and 1.9%. The EU unemployment rate for December edged lower to 6.4% from 6.5% in the previous month, beating the estimate of 6.5%.
EUR/USD Technical Analysis (the 60-min Chart)
Technically, the EUR/USD currency pair appears to have recently completed a downward breakout from an ascending channel formation. The pair has also pulled back to move closer to the oversold levels of the 14-hour RSI.
Therefore, the bears will be looking to extend the current pullback toward 1.0929 or lower to 1.0911. On the other hand, the bulls will be targeting potential rebounds at about 1.0963 or higher at 1.0980.
EUR/USD Technical Analysis (the Daily Chart)
In the daily chart, the EUR/USD currency pair appears to be trading within an ascending channel formation. However, the 14-day RSI still seems to have a lot of room left to run before reaching overbought conditions.
Therefore, the bulls will be looking to stretch the current run of gains toward 1.1042 or higher to 1.1138. On the other hand, the bears will be targeting long-term profits at about 1.0836 or lower at 1.0739.