- The Euro struggled to clear the 1.0840-50 resistance area against the Swiss Franc and currently moving lower.
- There was a support trend line formed on the H4 chart, which was broken recently by sellers.
- The EURCHF par is finding support near the 100 simple moving average (H4), which if breached might clear the way for more losses.
- Swiss UBS Consumption Indicator released today for November 2015 posted a minor rise from the last revised reading of 1.63 to 1.66.
The EURCHF faced a lot of selling pressure around the 1.0840-50 resistance area, and as a result there was a downside move. There was a support trend line formed on the H4 chart, which was cleared by sellers in order to take the pair lower.
Currently, the pair is trading near the 100 simple moving average (H4), which means there is a chance of buyers appearing.
However, if the recent trend line break is real then we may witness more losses in the near term. The next support on the downside is around the 1.0800 area.
Swiss UBS Consumption Indicator
Today, the Swiss UBS Consumption Indicator, which is a leading indicator of private consumption trends, and the most important component of Swiss GDP was reported for November 2015. The outcome was a bit positive, as there was a minor rise from the last revised reading of 1.63 to 1.66.
The report stated that the “monthly survey of the KOF Swiss Economic Institute at ETH Zurich indicates an encouraging trend in retail business, with November’s index values for sales slowly approaching the levels seen prior to the abandonment of the EURCHF minimum exchange rate”.
Overall, the Swiss Franc may gain against the Euro, and if the EURCHF pair attempts to correct higher, then it may face sellers around the broken trend line and resistance.