- Euro gained bids against the Swiss Franc recently, and may break higher in the near term.
- There is a flag pattern formed on the hourly chart of the EURCHF pair, which may be cleared to open the doors for more gains.
- In the Euro Zone, the German Economic Sentiment published by the ZEW came in at 11.2, up from the last reading of 4.3 in April 2016.
- Euro Zone Economic Sentiment also improved and came in at 21.5, up from 10.6.
The Euro after trading as low as 1.0900 against the Swiss franc moved higher. However, there is a flag pattern formed on the hourly chart of the EURCHF pair, which may act as a catalyst for the next move in the near term.
If the Euro bulls gain strength and manage to push the EURCHF pair above the resistance area, then a move towards the 1.0950 is possible.
On the downside, the most important support area can be near 1.0900, which must hold if the pair has to trade higher.
German Economic Sentiment
The German and the Euro Zone Economic Sentiment, which measures the institutional investor sentiment were published by the ZEW. The outcome was above the forecast, as the Economic Sentiment for Germany came in at 11.2 in April 2016, up from the last reading of 4.3.
Moreover, the Euro Zone Economic Sentiment also improved and came in at 21.5, up from 10.6 in April 2016. All in all, the outcome was positive, and helped the Euro to gain bids against the Swiss franc.
If the EURCHF pair succeeds in settling above the flag resistance area, then more upsides are likely moving ahead.