Key Points
- The Euro was not able to move above 1.0950 against the Swiss Franc, and moved down.
- There is a contracting triangle pattern formed with support at 1.0900 on the hourly chart of EURCHF.
- Today in Switzerland, the Industrial Production for Q1 2017 was released by the Swiss Statistics.
- The result was below the forecast, as the Industrial Production posted a decline of 1.6% (QoQ), compared with the last -1.2%.
EURCHF Technical Analysis
The Euro recently bounced from the 1.0880 low towards 1.0950 against the Swiss Franc, but was not able to retain the bullish momentum. Later, the EURCHF pair moved down, and broke the 23.6% Fib retracement level of the last wave from the 1.0881 low to 1.0949 high.
It even traded below the 21 simple moving average and tested a contracting triangle pattern formed with support at 1.0900 on the hourly chart.
The 61.8% Fib retracement level of the last wave from the 1.0881 low to 1.0949 high is preventing downsides. So, there is a chance of a minor upside move towards 21 SMA at 1.0920 where sellers might emerge.
Swiss Industrial Production
Recently in Switzerland, the Industrial Production for Q1 2017 was released by the Swiss Statistics. The market was positioned for a decline of around 1.5% in Q1 2017, compared with the previous quarter.
The result was below the forecast, as the Industrial Production posted a decline of 1.6%, compared with the last -1.2%. In terms of the yearly change, there was a decline of 4.6% in Q1 2017, more than the last -3.3%. The report stated that “In comparison with the previous year industrial production grew in January by 0.4%, it registered a decline in February of 1.2%, as well as in March by 2.9%. For the whole of 1st quarter 2017 production declined by 1.3% in comparison with the same quarter a year earlier”.
Overall, the EURCHF pair may correct a few pips higher, but may continue to struggle to remain above 1.0900.
