Key Points
- The Euro recently traded towards 1.0980 against the Swiss Franc, where it failed once again.
- The 1.0980 level in the EURCHF pair hold a lot of value, as it acted as a monster resistance many times.
- The German Industrial Production was released by the Statistisches Bundesamt Deutschland earlier today.
- The outcome was positive, as it posted a rise of 2.5% in August 2016, compared with the previous month.
EURCHF Technical Analysis
The Euro recently traded close to the 1.0980 level against the Swiss Franc, which acted as a resistance once again and prevented the upside move. The 4-hours chart of EURCHF clearly shows how many times the pair failed to break the same resistance area.
The pair is currently moving down, but finding bids near a bullish trend line on the same chart, which is coinciding with the 38.2% Fib retracement level of the last wave from the 1.0811 low to 1.0975 high.
Only a break below the 21 hourly SMA may call for more losses in the EURCHF pair moving ahead.
German Industrial Production
Today in the Euro Zone, the German Industrial Production, which measures outputs of the German factories and mines was released by the Statistisches Bundesamt Deutschland.
The market was expecting a rise of 0.8% in August 2016, compared with the previous month. However, the result was above the forecast, as there was an increase of 2.5% in the German Industrial Production. The report stated that “In August 2016, production in industry excluding energy and construction was up by 3.3%. Within industry, the production of capital goods increased by 4.7% and the production of consumer goods by 3.3%.The production of intermediate goods showed an increase by 1.6%. Energy production was up by 1.1% in August 2016 and the production in construction decreased by 1.2%”.
Overall, the Euro may bounce from the highlighted trend line support, but the 1.0980 holds the key for more gains.
