- Euro moved higher after testing a major support area at 1.0810 against the Swiss Franc.
- There was a bearish trend line on the hourly chart, which was broken to set the tone for more gains.
- The German business sentiment index released by the CESifo Group posted an increase from 108.2 to 109.0 in November 2015, more than the forecast.
- German Gross Domestic Product released by the Statistisches Bundesamt Deutschland gained 0.3% in Q3 2015, just as the market expected.
The EURCHF pair recently found support near the 200 hourly simple moving average and traded higher. There was a bearish trend line on the hourly chart, which was breached during the upside move. However, the upside move was stalled near 100 MA that acted as a barrier.
A break above 100 MA and the 38.2% Fib retracement level of the last drop from the 1.0900 high to 1.0813 low is needed for buyers to take control and take the pair higher.
On the downside, the broken trend line is acting as a support along with the 50 MA.
German IFO Business Climate Index
Today, there were some major releases in Germany. The main one was the German business IFO sentiment index, which is closely watched as an early indicator of current conditions and business expectations in Germany was reported by the CESifo Group. The market was not expecting any change in the index in November 2015. However, the result was positive, as the German IFO sentiment index increased to 109.0.
The report stated that “Assessments of the current business situation improved. Optimism with a view to future business developments also continued to increase for the third consecutive month”.
Overall, the economic reports in Germany were impressive and helped the Euro to gain some ground Intraday. It would be interesting to see whether buyers can hold the ground moving ahead or not.