Key Points
- The Euro is in a recovery mode against the Swiss Franc, but facing sellers near 1.0900-10.
- There are a few bearish trend lines formed on the hourly chart of EURCHF, which are acting as a resistance.
- Today in the Euro Zone, the Italian Retail Sales report was released by the National Institute of Statistics.
- The outcome was disappointing, as there was a decline of 0.3% in July 2016, compared with the previous month.
EURCHF Technical Analysis
The Euro managed to gain traction from the 1.0850 low against the Swiss Franc, and traded higher. However, the upside was limited by a few bearish trend lines formed on the hourly chart of EURCHF.
The Euro sellers are protecting the upside move in the pair, but there are a few supports on the downside as well.
The most important support is in the form of the 21 hourly simple moving average, sitting at the 50% Fib retracement level of the last wave from the 1.0852 low to 1.0914 high.
Italian Retail Sales
Today in the Euro Zone, the Retail Sales, which is a measure of changes in sales of the Italian retail sector and shows the performance of the retail sector in the short term was released by the National Institute of Statistics.
The forecast was slated for no change in July 2016, compared with the previous month. However, there was a decline of 0.3% in sales. The report mentioned that “In July 2016 the seasonally adjusted retail trade index decreased by 0.3% with respect to June 2016 (+0.3% for food goods and -0.5% for non-food goods). The average of the last three months increased with respect to the previous three months (+0.2%). The unadjusted index decreased by 0.2% with respect to July 2015”.
Overall, the Euro may remain under a bearish pressure, and remains at a risk of further declines against the Swiss Franc.
