Key Points
- The Euro recently failed near 1.0670 against the Swiss Franc and traded lower.
- There is a major bearish trend line with resistance at 1.0650 on the 4-hours chart of EURCHF.
- Recently, the Swiss Industrial Production for Q4 2016 was released by the Swiss Statistics.
- The result was disappointing, as there was a decline of 1.2% in Q4 2016 (QoQ), compared with the last increase of 0.2% (revised).
EURCHF Technical Analysis
The Euro after a move towards 1.0680 against the Swiss Franc found sellers. During the upside move, it broke a bearish trend line at 1.0660, but failed to break another bearish trend line on the 4-hours chart at 1.0677.
As a result, there was a downside move, and the EURCHF pair was back below the first trend line and 1.0650. The pair is currently struggling to hold the 21 simple moving average and remain at risk of a move towards 1.0620.
On the upside, both the trend lines are important at 1.0660 and 1.0675. As long as the pair is below these resistance levels, there is a risk of a downside move towards 1.0620 or 1.0600.
Swiss Industrial Production
Recently in Switzerland, the Swiss Industrial Production for Q4 2016 was released by the Swiss Statistics. The market was expecting the volume of production of Industries such as factories and manufacturing to remains stable around 0.1% in Q4 2016, compared with the previous quarter.
The outcome was lower than the forecast, as there was a decline of 1.2% in Q4 2016 (QoQ). The last reading was revised from +0.4% to +0.2%. The report added that “Secondary sector production declined 0.8% in 4th quarter 2016 in comparison with the same quarter a year earlier. Turnover fell by 2.1%”.
Overall, it all depends on the 1.0650-660 resistance area in EURCHF. If the pair stays below it, there can be a decline towards 1.0620.
