Key Points
- The Euro moved below the 1.0850 support versus the Swiss Franc to initiate a downtrend.
- There is a descending channel pattern formed on the hourly chart of EURCHF, which is currently acting as a resistance at 1.0845.
- In the Euro Zone today, the Greece current account figure was released by the Bank of Greece.
- The outcome was above the last reading, as there was a trade surplus of €1.821B in August 2016.
EURCHF Technical Analysis
The Euro declined recently and moved below the 1.0850 support against the Swiss Franc to trade as low as 1.0822. The EURCHF pair is currently recovering, which may not last long due to a descending channel pattern formed on the hourly chart.
The resistance trend line of the channel pattern is also coinciding with the 21 hourly simple moving average, suggesting that 1.0850-45 is a major hurdle for the Euro buyers.
As long as the pair is below the highlighted resistance area, it may continue to move down.
Greece Trade Balance
Today in the Euro Zone, the current account, which is a net flow of current transactions, including goods, services and interest payments into and out of Greece was released by the Bank of Greece.
The last trade surplus was €1.443B, and this time in August it was better, as it came in at €1.821B. The report added that the “deficit of the balance of goods declined year-on-year, owing to the significant improvement in the oil balance and to the rise in non-oil exports. The latter was offset by the increase in non-oil imports. It should be noted that, at constant prices, total exports of goods increased by 7.8% and non-oil exports by 8.0%”.
It was a low risk event, but still managed to push the Euro a few pips higher. However, the EURCHF pair remains in a downtrend as long as below 1.0850.
