- Euro tumbled against the Swiss Franc and traded below a major support area of 1.10.
- There was a bullish trend line break noted on the 4-hours chart of the EURCHF pair, which ignited a downside move.
- In the Euro Zone, the Italian Industrial Output released by the National Institute of Statistics posted a decline of 0.7% in December 2015, compared with the 0.3% increase forecast.
- In terms of the yearly change, there was a decline of 1% in the Industrial Output.
The Euro moved down this week against the Swiss Franc, and also cleared a bullish trend line break noted on the 4-hours chart. The pair also traded below the 100 and 50 simple moving average (H4), suggesting sellers are in control.
The EURCHF pair is currently trading near the 200 SMA (H4), which if holds may push the pair back higher in the short term.
On the other hand, if the 200 SMA (H4) is broken, then a move towards the 1.0900 support area is also possible.
Italian Industrial Output
Today, the Italian Industrial Output, which shows the volume of production of Italian industries such as factories and manufacturing was released by the National Institute of Statistics. The market was expecting a rise of 0.3% in December 2015, compared with Nov 2015. However, the result was disappointing, as the Italian Industrial Output fell by 0.7%.
In terms of the yearly change, the Italian Industrial Output decreased 1.6%, which was very discouraging since the forecast was aligned for a forecast of 0.3%.
The Euro was under a lot of bearish pressure after the release, and it looks like the EURCHF pair may extend the downside move in the near term.