Key Points
- The Euro surged higher against the Swiss Franc, and traded close to the 1.0940 level.
- There is a resistance trend line formed on the hourly chart of the EURCHF pair, which prevented further gains in the pair.
- The German GfK Consumer Confidence released today posted a minor decline from 10.1 to 10 in August 2016.
- The Spanish Retail Sales released by the National Institute of Statistics posted a rise of 5% in June 2016, more than the last increase of 2.3%.
Technical Analysis
The Euro buyers crushed the Swiss bulls and took the EURCHF pair higher towards the 1.0950 level. The EURCHF pair upside found sellers near a resistance trend line formed on the hourly chart.
The highlighted trend line and resistance may ignite a minor downside towards the 23.6% Fib retracement level of the last leg from the 1.0838 low to 1.0937 high.
Overall, the trend is bullish for the EURCHF pair, and one may consider buying dips in the near term.
German GfK Consumer Confidence
Today in the Euro Area, there were a couple of economic releases lined up, and the most important one was the GfK Consumer Confidence. It is a leading index that measures the level of consumer confidence in economic activity and was forecasted to decline from 10.1 to 9.9 in August 2016.
However, the result was a bit better, as the decline was from 10.1 to 10. The report stated that “The consumer climate in Germany weakened slightly in July. Also as a result of Brexit in the United Kingdom, the Consumer Climate overall indicator forecasts 10.0 points for August, down from 10.1 points in July. Economic and income expectations suffered losses, while propensity to buy increased slightly again.”
Overall, the Euro may face a bit of selling pressure in the short term, but it remains in an uptrend in the medium term.
