- The Euro after consolidating for some time against the Swiss Franc broke higher and cleared a major resistance.
- There was a contracting triangle pattern formed on the hourly chart of the EURCHF pair, which was cleared during the recent upside move.
- Today, the Euro Zone Current Account was released by European Central Bank.
- The outcome was not as the market expected, as the trade surplus was €21.0B, less than the forecast.
EURCHF Technical Analysis
The Euro after trading in a range against the Swiss franc for some time managed to trade higher. During the recent bullish move, the EURCHF pair also broke a contracting triangle pattern formed on the hourly chart.
The pair is also above the 21 hourly simple moving average, suggesting that the recent break was very crucial.
So, if the pair corrects lower from the current levels, then one may consider buying for an upside move. Alternatively, the pair may continue to trade higher.
Euro Zone Current Account
Earlier during the London session, the Euro Zone Current Account figures were released by European Central Bank. The market was expecting the net trade surplus to come in at €27.2B in July 2016. However, the result was a bit lower, as the net flow of current transactions, including goods, services, and interest payments was €21.0B.
The report stated that “The 12-month cumulated current account for the period ending in July 2016 recorded a surplus of €343.2 billion (3.2% of euro area GDP), compared with one of €309.7 billion (3.0% of euro area GDP) for the 12 months to July 2015. This development was mostly due to an increase in the surpluses for both goods (from €318.8 billion to €363.0 billion) and services (from €63.6 billion to €64.9 billion), as well as a decrease in the deficit for secondary income (from €134.5 billion to €126.0 billion).”
Overall, there is hardly anything for the Euro bulls at the moment, so can they keep the current momentum going?