Key Points
- The Euro made a nice upside move and traded close to the 1.10 handle against the Swiss Franc.
- The EURCHF pair is currently correcting lower and formed an expanding triangle with support at 1.0920 on the hourly chart.
- In the Euro Zone today, the Italian Consumer Price Index for April 2017 was released by Istat.
- The result was above the forecast, as the Italian Consumer Price Index increased 1.9% in April 2017.
EURCHF Technical Analysis
The Euro was in a decent uptrend, as it moved above the 1.0960 resistance against the Swiss Franc. The EURCHF pair traded close to the 1.10 handle where it faced offers and moved down to trade below the 21 hourly simple moving average.
The pair fell towards 1.0920, and formed an expanding triangle on the hourly chart. It is currently finding resistance near the 21 hourly simple moving average and the 50% Fib retracement level of the last drop from the 1.0987 high to 1.0920 low.
A break above the 21 hourly simple moving average or 1.0950 might ignite an upside move back towards the 1.0980 level.
Italian Consumer Price Index
Recently in the Euro Zone, the Italian Consumer Price Index for April 2017 was released by Istat. The market was expecting an increase of 1.8% in April 2017, compared with the same month a year ago.
The outcome was above the forecast, as the Italian Consumer Price Index increased 1.9% in April 2017. The last reading was also revised to 1.9% from 1.8%. The report added that the “speed up of the annual rate of change of All items index was mainly due to prices of Regulated energy products (+5.7%, from -1.2% in the previous month), to which contributed both Electric energy (+5.4%, from -1.0% in March) and Natural gas (+5.9%, from -1.4%), and also to prices of Services related to transport (+5.5%, up from +2.5% in the previous month)”.
Overall, the EURCHF pair may dip a few pips towards the 1.0920 level, but likely to find support on the downside.
