Key Points
- The Euro traded lower recently against the Swiss franc to test the 1.0840 support level.
- There is a support trend line on the hourly chart of the EURCHF pair, which protected the downside.
- Today, the ZEW Survey Expectations was published by the Centre for European Economic Research.
- The Swiss ZEW Survey Expectations posted a decline from the last reading of 5.9 to -2.8 in August 2019.
EURCHF Technical Analysis
The Euro tumbled recently against the Swiss Franc, and remained in a downtrend. The recent downside move found support near a trend line on the hourly chart of the EURCHF pair.
There is a chance of it recovering the near term. On the upside, an initial resistance is around the 38.2% Fib retracement level of the last drop from the 1.0889 high to 1.0835 low.
The most important resistance is around the 21 hourly SMA, as it is also around the 50% Fib retracement level of the last drop from the 1.0889 high to 1.0835 low.
Swiss ZEW Survey Expectations
Today, the ZEW Survey Expectations, which presents business conditions, employment conditions and other elements affecting the day to day running of a business in Switzerland was published by the Centre for European Economic Research.
The market not expecting a major decline in August 2016. However, the result was negative, as the ZEW Survey Expectations posted a decline from the last reading of 5.9 to -2.8. The published report stated that “With a drop by 8.7 points to a reading of minus 2.8 points, the indicator continues the downward trend already seen in the previous month. When it comes to the current economic situation, however, the surveyed experts recorded an upward trend, with the relevant indicator rising from 0.0 points in July 2016 to a current reading of 11.3 points.”
Overall, the EURCHF pair may move a few pips from the current levels, but the 21 hourly SMA may act as a barrier for the Euro bulls.
