- Euro continued to move higher against the Swiss Franc, as the latter one was sold aggressively.
- EURCHF pair recently corrected lower, but found support near a support trend line on the hourly chart.
- Euro Area Trade Balance released by the Eurostat was above the forecast today, as it posted a trade surplus of €22.7B in November 2015.
- Moreover, the Spanish Consumer Price Index came in at -0.3% in December 2015, same as the forecast.
The EURCHF pair after climbing as high as 1.0980 started to correct lower, and traded close to a bullish trend line on the hourly chart. The pair found buyers and currently trading higher. The pair is well above the 100, 200 and 50 hourly simple moving average, suggesting more gains in the near term.
If the sellers manage to clear the trend line and support area, then the bullish trend may be at risk as the pair could slide in that situation.
On the upside, a break above 1.0980 is needed for a test of 1.10.
Today, there were a few releases in the Euro area, including the Spanish and Italian CPI. The Spanish Consumer Price Index was reported by the National Institute of Statistics. The presents the price movements by the comparison between the retail prices of a representative shopping basket of goods and services. The market was expecting a decrease of 0.3% in December 2015, compared Nov 2015. The result was better than the forecast, as the Spanish CPI rose 0.4%.
Overall, the reports were mixed in the Euro Area, but helped the shared currency to contain losses in the near term.
The EURCHF pair remains in an uptrend, and it looks like buyers may step in if the pair attempts to correct lower.