Key Points
- The Euro traded higher recently vs the Swiss Franc, but currently facing a major resistance area.
- There is a monster bearish trend line formed on the hourly chart of the EURCHF pair, which is preventing an upside break.
- The Swiss Industrial Production released by the Swiss Statistics today posted a decline of 2.2% in Q1 2016.
- In terms of the quarterly change, the Swiss Industrial Production gained by 1% in Q1 2016.
Technical Analysis
The Euro traded as low as 1.1039 vs the Swiss franc before finding buyers around the stated level. The EURCHF pair recovered well, but it found sellers near a monster bearish trend line formed on the hourly chart.
Moreover, the 100 hourly simple moving average is also positioned around the trend line, pointing towards the importance of the resistance area.
The chances of a failure to break the trend line is a lot more, which may take the EURCHF pair back towards the 50 hourly SMA.
Swiss Industrial Production
Today, the Swiss Industrial Production, which shows the volume of production of Industries such as factories and manufacturing was released by the Swiss Statistics. The outcome was mixed, as there was a decline of 2.2% in Q1 2016, compared with the same quarter a year ago.
And, when we look at the quarterly change, the Swiss Industrial Production gained by 1% in Q1 2016. The report added that “For the whole of 1st quarter 2016 production increased by 1.0% in comparison with the same quarter a year earlier. The “Manufacture of refined petroleum and chemical products” sector reported an unusual development (+20.9%)”.
Overall, the EURCHF is facing a major barrier, and as long as it is below the trend line resistance, it may decline once again.
