Key Points
- The Euro remained above the 1.0680 support against the Swiss Franc, and traded higher.
- There is a bullish trend line with support at 1.0680 formed on the hourly chart of EURCHF.
- Today in the Euro Area, the quarterly Labour Cost for Q4 2016 was released by Eurostat.
- The result was above the forecast, as there was a rise of 1.6% in Q4 2016, compared with the last +1.4% (revised).
EURCHF Technical Analysis
The Euro after failing near 1.0825 against the Swiss Franc declined, and moved below 1.0800. However, the EURCHF pair found a bullish trend line with support at 1.0680 on the hourly chart, which acted as a barrier and prevented further losses.
The pair recovered, and moved above the 23.6% Fib retracement level of the last decline from the 1.0825 high to 1.0684 low. It is now above the 21 hourly simple moving average at 1.0730.
At the moment, the pair is attempting a break above a monster resistance at 1.0750, which is also around the 38.2% Fib retracement level of the last decline from the 1.0825 high to 1.0684 low. A break could push the pair towards 1.0800.
Euro Area Labour Cost
Today in the Euro Area, the quarterly Labour Cost for Q4 2016 was released by Eurostat. The market was expecting the total hourly costs incurred by the employers of maintaining their employees to increase by around 1.5% in Q4 2016.
The outcome was above the forecast, as there was a rise of 1.6% in Q4 2016, compared with the last +1.4% (revised). The report added that the “two main components of labour costs are wages & salaries and non-wage costs. In the euro area, wages & salaries per hour worked grew by 1.6% and the non-wage component by 1.5%”.
Overall, the Euro remains at the edge against the Swiss franc, and if EURCHF breaks 1.0750, there can be more gains towards 1.0800.
