Germany & Swiss economic numbers cushion to short term euro slumps

German's MoM import price index printed at 0.6% which is beyond consensus.

Import Prices in Germany increased to 103.20 Index Points in April of 2015 from 102.60 Index Points in March of 2015 as reported by the Federal Statistical Office.

Switzerland recorded a trade surplus of 2856 CHF million in April of 2015 which is also slightly above forecast numbers.

Technical mirror: (EUR/GBP)

Although on both weekly and daily charting patterns of this pair evidence early signs of recovery, this hasn't been sufficed. As the oscillating curve RSI (14) is showing convergence with price line, price began rallying in intraday as well but this was not substantiated by stochastic yet.

On the contrary to bearish view we suppose the positive notes from Germany and Swizz may also add little strength but if this fails to attain we foresee steep further declines.

On weekly chart it is observed that candle resembling a strong bearish engulfing candle pattern occurred last week followed by hammer candlestick pattern.

Hence, a clear interpretation is that feel bullish with a hammer after a falling market or bearish after a rising market.

Here in this case, long term trend was downtrend, at 0.7253, again around 0.7108 levels hammers occurred which can be perceived as a slight recovery in near term. But for long term perspectives enough confirmation required in addition to good fundamentals to the conducive business environment.