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FxWirePro: EUR/CHF tests 88.6% Fib, further downside on cards

EUR/CHF chart - Trading View 

Technical Analysis: Bias Bearish

- EUR/CHF pauses downside after 7th straight sessions of weakness

- The pair was trading 0.04% higher on the day at 1.7026 at around 10:15 GMT

- Price action has broken below major trendline support at 1.0750 and has tested 88.6% Fib

- The pair confirms 'Death Cross' (bearish 50-DMA crossover on 200-DMA) on the daily charts

- Momentum is strongly bearish, Stochs and RSI are sharply lower, GMMA shows strong bearish bias

Data Released:

Eurozone Retail Sales recorded a growth of 1.5% MoM in June, missing expectations at 1.7% and compared to 4.1% in the previous month.

On an annualized basis, the bloc’s Retail Sales increased by 5.0% in June versus 8.6% booked in May and 4.5% estimated.

IHS Markit’s German final services Purchasing Managers’ Index (PMI) measuring activity in the sector rose to 61.8 in July from 57.5 in June. 

July reading showed activity in Germany’s service sector grew at the fastest pace on record.

The composite PMI index, which comprises both the service and manufacturing sectors, rose to 62.4 in July from 60.1 in June.

Support levels - 1.0716 (88.6% Fib), 1.07, 1.0660 (Nov 2020 low)

Resistance levels - 1.0740 (5-DMA), 1.0750 (Trendline support turned resistance), 1.0776 (76.4% Fib)

Summary: EUR/CHF trades with a strong bearish bias. Recovery attempts lack traction. Softer Eurozone PMIs/Retail Sales data are likely to keep pressure on the single currency. Bears eye Nov 2020 low at 1.0660.

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