FxWirePro: EUR/CHF on track to test 200-DMA support, euro depressed after unexpected drop in German ZEW Economic Sentiment Index

EUR/CHF chart - Trading View 

EUR/CHF was trading 0.22% lower on the day at 1.0916 at around 09:25 GMT.

The pair trades with a bearish technical bias and is on track to test 200-DMA support at 1.0869.

The single currency under pressure after data released earlier on Tuesday showed an unexpected drop in German ZEW Economic Sentiment Index.

The German ZEW headline numbers for June showed that the Economic Sentiment Index worsened unexpectedly to 79.8 from 84.4 previous, missing consensus for a rise to 86.0.

Meanwhile, the Current Conditions sub-index recovered firmly to -9.1 in June as against -40.1 in the previous month, a big beat on expectations at -27.8.  

Further, the Eurozone ZEW Economic Sentiment for June fell to 81.3 as compared to 84.0 previous, also above consensus forecast at 77.0. 

EUR/CHF is extending gradual grind for the past 3 months. Technical indicators have turned bearish. 

Price action has slipped below daily cloud, oscillators are biased lower and volatility is rising. Scope for test of 200-DMA at 1.0869. Violation there will open downside.