Key Points
- The Euro recently made an upside move, but failed to remain above the 1.1050 resistance against the Swiss Franc.
- The EURCHF pair broke a key bullish trend line with support at 1.1045 on the hourly chart.
- Recently in the Euro Zone, the CPI for June 2017 was released by the Eurostat.
- The outcome in line with the forecast, as the CPI posted an increase of 1.3% (YoY).
EURCHF Technical Analysis
There was a slow and steady rise in the Euro above 1.1000 against the Swiss Franc. The EURCHF pair even moved above the 1.1020 level and the 21 hourly simple moving average. However, the pair failed to remain above the 1.1050 resistance.
After trading as high as 1.1073, the pair declined and moved below a key bullish trend line with support at 1.1045 on the hourly chart and the 21 hourly simple moving average.
The downside move was protected by the 1.1025 support. The pair is currently correcting higher, but likely to face sellers near 1.1040-50. Any further gains could be limited by 1.1050 and 1.1060.
Euro Zone CPI
Recently in the Euro Zone, the CPI for June 2017 was released by the Eurostat. The market was positioned for a rise of 1.3% in the CPI compared with the same month a year ago.
The actual result was in line with the forecast, as the CPI posted an increase of 1.3%. When we look at the monthly change, the forecast was of no change in June 2017, and the result was again as expected. The report mentioned that:
The lowest annual rates were registered in Ireland (-0.6%), Denmark (0.4%) and Romania (0.7%). The highest annual rates were recorded in Lithuania (3.5%), Estonia and Latvia (both 3.1%).
Overall, the EURCHF pair may correct a few pips higher, but the upside remains capped near 1.1050-60.
