FxWirePro: EUR/CHF breaks above daily cloud, upbeat German IFO data boosts euro

EUR/CHF chart - Trading View 

Spot Analysis:

EUR/CHF was trading 0.19% higher on the day at 1.0968 at around 08:40 GMT

Previous Week's High/ Low: 1.0954/ 1.0869

Previous Session's High/ Low: 1.0968/ 1.0945

Fundamental Overview:

IHS Markit Eurozone Service PMI rose to 58.0 in June, beating market forecast at 57.8. The Consumer Confidence Indicator gained 1.8 points, slightly higher than the market consensus at -3.0.

The headline German IFO Business Climate Index rose to 101.8 in June versus last month's 99.2, much above market consensus at 100.6.

German Current Economic Assessment arrived at 99.6 points in the reported month as compared to last month's 95.7 and 97.8 anticipated.

The IFO Expectations Index improved further to 104.00 in June from the previous month’s 102.9, better than the market expectations of 103.9.

Technical Analysis:

- Price action has broken above channel top

- Momentum studies are bullish, RSI is above 50, bias higher

- MACD confirms bullish crossover on signal line

- Volatility is high as evidenced by wide Bollinger bands

Summary: Upbeat German data buoys the single currency. Break above channel top raises scope for further upside. Next major hurdle lies at daily cloud. Breakout at cloud fuels further upside.