- Euro is trading near a major resistance area against the Swiss franc, and may struggle to trade higher.
- There is a bearish trend line formed on the 4-hours chart of the EURCHF pair, which is acting as a barrier for gains.
- The Italian Business Confidence released by the Istat posted an increase from 102 to 102.2 in March 2016.
- Euro Zone M3 Money Supply released by the European Central Bank posted an increase of 5% in Feb 2016, just as the market expected.
The Euro recently found support near 1.0875 against the Swiss franc, and currently attempting to trade higher. However, there is a monster bearish trend line formed on the 4-hours chart of the EURCHF pair, which is stalling gains and acting as a hurdle.
Another important aspect is that the trend line is just around the 100 and 200 simple moving average (4-hours), pointing towards the significance of the resistance.
On the upside, a break above the trend line and resistance area could open the doors for more upsides.
Italian Business Confidence
Today, the Italian Business Confidence, which is a survey of the current business condition in Italy was released by the Istat. The market was expecting an increase from 102.0 to 102.3 in March 2016. However, the Italian Business Confidence came in at 102.2.
The report added that “The economic, current and future components increased (from 141.8 to 142.9, from 110.7 to 111.1, from 120.4 to 120.6 respectively); the personal component decreased (from 105.8 to 105.7). The balance concerning expectations on unemployment does not change over the past month (12)”.
Overall, the Euro may find it very tough to break the 1.0930-940 resistance area against the Swiss Franc, and might trade down.