Key Points
- The Euro looks like is in an uptrend against the Swiss Franc and may continue to move higher.
- There is a bullish trend line formed on the hourly chart of the EURCHF pair, which is acting as a support area for the Euro.
- Earlier today, the German Factory orders report was released by the Deutsche Bundesbank.
- The outcome was not as expected, as there was a decline of 0.4% in orders in June 2016, compared with the forecast of a 0.6% rise.
Technical Analysis
The Euro recently moved higher to trade near 1.0860 versus the Swiss Franc, and it looks like the bulls are in control at present. There is a bullish trend line formed on the hourly chart of the EURCHF pair, which can be considered as a buy area.
Moreover, the 21 hourly simple moving average is just above the trend line support, which is a good sign for buyers.
On the upside, a break above 1.0860 may trigger a move towards the 1.0900 level in the near term.
German Factory Orders
Earlier today during the London session, the German Factory orders, which is an indicator that includes shipments, inventories, and new and unfilled orders was released by the Deutsche Bundesbank.
The market was expecting a rise of 0.6% in June 2016, compared with the previous month. However, the result was disappointing, as there was a decline of 0.4% in orders. Moreover, the report added that “In June 2016, domestic orders increased by 0.7%, while foreign orders decreased by 1.2% on the previous month. New orders from the euro area were down 8.5% on the previous month, while new orders from other countries increased by 3.8% compared to May 2016”.
The outcome wasn’t great, but there was not much impact on the Euro, and buying dips remain a good idea in the short term.
