Key Points
- The Euro after moving down towards 1.0800 against the Swiss Franc found support and recovered.
- The EURCHF pair recently broke two important bearish trend lines at 1.0825 formed on the hourly chart.
- In Switzerland today, the SECO Consumer Climate Index for Q2 2017 (3m) was released by the State Secretariat for Economic Affairs SECO.
- The result was way below the forecast, as the Consumer Climate Index posted a decline from the last reading of -3 to -8 in Q2 2017.
EURCHF Technical Analysis
The Euro during the last wave found sellers near 1.0873 against the Swiss Franc and moved down. The EURCHF pair traded towards 1.0800, and formed a low at 1.0792 before finding support and starting a recovery phase.
The pair moved higher and cleared the 23.6% Fib retracement level of the last decline from the 1.0873 high to 1.0792 low. The best part was a break above two important bearish trend lines at 1.0825 formed on the hourly chart.
At the moment, the pair is attempting a move above the 21 simple moving average and the 50% Fib retracement level of the last decline from the 1.0873 high to 1.0792 low. If it succeeds, it can easily break 1.0845 for more upsides towards 1.0870.
SECO Consumer Climate Index
Recently in Switzerland, the SECO Consumer Climate Index for Q2 2017 (3m) was released by the State Secretariat for Economic Affairs SECO. The forecast was lined up for a sharp increase from the last reading of -3 to 3.
The result was way below the forecast, as the Consumer Climate Index posted a decline from the last reading of -3 to -8 in Q2 2017. The report added that “While expectations for overall economic developments are above average in April, they are less positive than they were in January. Expectations concerning the financial situation and savings possibilities of domestic households are also marginally bleaker”.
Overall, the EURCHF pair is trading with a bullish bias, and may soon attempt a break above 1.0840 for a move towards 1.0870.
