Key Points
- The Euro after finding bids near the 1.0870 support against the Swiss Franc started an upside move.
- The EURCHF pair moved higher, but facing a major bearish trend line at 1.0900 on the hourly chart.
- Today in the Euro Zone, the Manufacturing Purchasing Managers Index (PMI) for May 2017 was released by the Markit Economics.
- The outcome was around the forecast, as the PMI posted no change from the last reading of 57.
EURCHF Technical Analysis
The Euro made a downside move recently and traded towards 1.0870 against the Swiss Franc where it found support. Later, the pair started an upside move, and broke the 38.2% Fib retracement level of the last decline from the 1.0911 high to 1.0869 low.
The pair is currently trading near the 21 hourly simple moving average, and the 61.8% Fib retracement level of the last decline from the 1.0911 high to 1.0869 low at 1.0895.
It needs to break a major bearish trend line at 1.0900 on the hourly chart in order to gain momentum. On the downside, the 1.0880 level remains a crucial support area.
Euro Zone Manufacturing PMI
Recently in the Euro Zone, the Manufacturing Purchasing Managers Index (PMI) for May 2017 was released by the Markit Economics. The market was positioned for no change in the PMI from 57 in May 2017.
The result was around the forecast, as the PMI posted no change from the last reading of 57. However, the German Manufacturing PMI posted an increase from 59.4 to 59.5 in May 2017. The Euro Zone Manufacturing PMI report stated that “Strong growth of production and new business support survey-record job creation. Germany stays atop the PMI growth rankings with fastest gains in output, new orders and jobs“.
Overall, the EURCHF has bright chances of further gains above 1.0900 in the near term.
