Key Points
- Euro after trading as high as 1.1093 vs the Swiss Franc moved lower and broke a major support area.
- There was a bullish trend line formed on the hourly chart of the EURCHF pair, which was broken recently.
- Swiss Consumer Price Index, issued by the Swiss Federal Statistical Office posted an increase of 0.3% in April 2016, more than the forecast of 0.1%.
- In terms of the yearly change, there was a decrease of 0.4% in April 2016, which was again better than the forecast.
Technical Analysis
The Euro surged higher vs the Swiss Franc and traded as high as 1.1093 where it found sellers. The EURCHF pair started trading lower and broke a major a bullish trend line formed on the hourly chart, and may be heading towards the next bullish trend line on the same chart.
There are many support areas on the downside like the 100 and 200 simple moving average along with the highlighted trend line.
Short-term selling and then buying near the 200 SMA may be considered moving ahead.
Swiss Consumer Price Index
Today, there was a major release in Swiss, as the Consumer Price Index, which measures the average price change for all goods and services purchased by households for consumption purposes was issued by the Swiss Federal Statistical Office. The forecast was slated for a rise of 0.1% in April 2016, compared with the previous month.
However, the result was above the forecast, as there was a rise of 0.3% in the CPI in April 2016. In terms of the yearly change, there was a decrease of -0.4% in April 2016, which was again better than the forecast of -0.7%.
The Swiss Franc gained after the release, and it looks like EURCHF may decline further in the near term towards 1.1010.
