On Tuesday, the EUR/CHF currency pair bounced back from the session lows of about 0.9131 to trade at about 0.9165. The currency pair trades within a descending channel formation on the 60-minute chart.
The pair continues to trade below the 100-hour moving average line, despite the latest rebound. As a result, the currency pair still has room left to run before reaching 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 both markets. In Switzerland, the consumer price index for October accelerated to 0.2% on a month-over-month basis, up from 0% in September and above the forecast rate of 0%. The (YoY) equivalent also came in hotter than expected, at 1.5% versus a forecast of 1.3%, up from the previous month’s equivalent of 1%. On Monday, the Swiss retail sales for September missed the expected (YoY) change of 3%, with a change of 1.6%.
In the EU, Germany’s retail sales for September fell by 2% compared to the previous month’s growth of 1.2%, missing the forecast change of -1.44%. The (YoY) equivalent also saw retail sales fall by 2.3% compared to a decline of 0.3% in August. On the other hand, the HCOB Manufacturing PMI for October remained unchanged at 54.2, in line with expectations.
Traders will be looking forward to the German HCOB Composite and Services PMIs for October on Wednesday, alongside the EU’s preliminary harmonized index of consumer prices data for October.
EUR/CHF Technical Analysis (the 60-min Chart)
Technically, the EUR/CHF currency pair trades within a descending channel formation on the 60-minute chart. However, the 14-hour RSI has recently bounced back to avoid falling into oversold conditions.
Therefore, the bulls will look to stretch the current rebound towards 0.9200 or higher, up to 0.9234. On the other hand, the bears will look to pounce on profits at about 0.9131 or lower, down to 0.9094.
EUR/CHF Technical Analysis (the Daily Chart)
In the daily chart, the EUR/CHF currency pair also trades within a descending channel formation. The 14-day RSI also supports a long-term bearish bias as it moves closer to oversold conditions.
Therefore, the bears will look to ride the current run of declines toward 0.9050 or lower, down to 0.8924. On the other hand, the bulls will look to bounce on rebounds at about 0.9276 or higher, up to 0.9392.