Key Points
- The Euro remained in an uptrend against the Swiss Franc, and recently tested the 1.0817 resistance.
- The EURCHF pair is currently correcting lower, and heading towards a major bullish trend line formed on the hourly chart at 1.0765.
- Today in the Euro Zone, the Caixin China Manufacturing PMI™ was released by Markit Economics.
- There outcome was in line with the forecast, as there was a decline from 54.1 to 53.7 in Nov 2016.
EURCHF Technical Analysis
The Euro recently spiked higher towards 1.0817 against the Swiss Franc, where sellers appeared and ignited a downside move. The EURCHF pair started a correction, and at the moment heading towards a major bullish trend line formed on the hourly chart at 1.0765.
The pair is just around the 21 hourly simple moving average and the 61.8% Fib retracement level of the last decline from the 1.0740 low to 1.0817 high.
So, there is a chance of the EURCHF pair gaining bids on the downside, especially near the trend line support.
Euro Zone Manufacturing PMI
Today in the Euro Zone, the Manufacturing Purchasing Managers Index (PMI), which captures business conditions in the manufacturing sector was released by the Markit Economics.
The market was expecting a decline from the last reading of 54.1 to 53.7 in Nov 2016. The result was in line with the forecast, as the PMI came in at 53.7. The report added that the PMI “Manufacturing production rose for the forty-first month running in November, although the rate of expansion eased slightly. Underpinning the increase in output was the sharpest rise in new orders since February 2014, as demand from domestic and export markets improved. Greece was the only nation covered by the survey to register declines in output, new business and new export orders“.
Overall, the EURCHF pair remains supported on the downside as long the trend line is intact above 1.0750.
