- Euro moved down against the Swiss franc to trade near 1.0842 where it found bids.
- The EURCHF pair is currently trading higher, but facing a lot of resistance near a bearish trend line on the 4-hours chart.
- Italian Industrial Output released by the National Institute of Statistics posted a decline of 0.6% in February 2016.
- In terms of the yearly change, there was a rise of 1.2% in Feb 2016.
The Euro struggled recently against the Swiss Franc, and traded lower towards the 1.0840 support area where it found buyers. The EURCHF started a correction, but currently facing offers near a bearish trend line on the 4-hours chart.
The trend line resistance holds a lot of importance, as above it the 100, 200 and 50 hourly simple moving averages are positioned.
A break above the 100 SMA could push the pair higher and may take it towards the 1.0940 levels.
Italian Industrial Output
Today, there was hardly any major release in the Euro Zone. 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 forecast was slated or a decline of 0.7% in Feb 2016, but it came in at -0.6%.
Moreover, in terms of the yearly change, there was a rise of 1.2% in Feb 2016, compared with the same month a year ago, and the last reading was revised down to 3.8%. The report added that “in the period January-February 2016 the percentage change was +2.5 compared with the same period of 2015”.
The EURCHF may find it very tough to break the highlighted trend line and resistance area. So, as long as it is below it, we can consider selling.