- – The Euro traded higher against the Swiss Franc, and moved above the 1.0720 resistance.
- – The EUR/CHF pair is currently above 100 simple moving average and a bearish trend line on the 4-hours chart.
- – Today in Switzerland, the UBS Consumption Indicator was released by UBS.
UBS Consumption Indicator
Today in Switzerland, the UBS Consumption Indicator, which is a leading indicator of private consumption trends and the most important component of Swiss GDP was released by UBS. The market was aligned for no major increase from the last reading of 1.49 in Nov 2016.
However, the result was mixed and mostly on the lower side. The UBS Consumption Indicator for Nov 2016 came in at 1.43. And, the last reading was revised down from 1.49 to 1.39. The report added that “Another strong month in domestic tourism and the positive trend on the automobile market made the rise possible. Initially a solid start is to be expected for 2017, but momentum is expected to subside”.
The result may have a short-term impact on the Swiss Franc, but judging at the technical analysis, the EUR/CHF pair may trade higher. The most important resistance on the upside is near 1.0800.
EUR/CHF Technical Analysis
The Euro recently declined towards 1.0677 against the Swiss Franc from where a recovery mode was initiated. The EUR/CHF pair moved higher and cleared the 23.6% Fib retracement level of the last drop from the 1.0897 high to 1.0677 low.
Moreover, the pair also closed above a bearish trend line formed on the 4-hours chart of EUR/CHF at 1.0720. Lastly, the pair also broke the 100 simple moving average on the same chart to open the doors for more gains.
At the moment, the pair is facing sellers near the 38.2% Fib retracement level of the last drop from the 1.0897 high to 1.0677 low. A break above the stated level could trigger more gains in the near term. The market sentiment is positive for the pair, suggesting more upsides towards 1.0800. The H4 RSI has also moved above the 50 level, which is a bullish sign in the short term for EUR/CHF.Tags: EUR/CHF Technical Analysis, Euro, Swiss Franc