6 Nov 2013
EUR/CHF hovers around 1.2318 area
FXstreet.com (Athens) – The EUR/CHF has been heading in the upper level during the European trading session, despite the soft Euro zone data ahead of the ECB’s meeting.
The EUR/CHF is trading around 1.2317, being captured amidst the confluence of the 200 – daily SMA (1.2311), 50 – daily EMA (1.2319) and the 20 – daily EMA (1.2318) at the area as of 1.2311-1.2319.Regarding the data, today’s Euro zone retail sales fell by 0.6% on a monthy basis slightly more than had been expected, showing that growth momentum in consumer spending remains fragile and weak. Earlier the Euro zone PMI data were announced at slightly better levels, therefore against this backdrop, Draghi might be enforced to keep the door wide open to a potential interest rate cut at tomorrow’s ECB meeting.
Technical Aspects on the EUR/CHF
The cross should manage to make a decent close above the 200-hourly SMA (1.2325) to trade higher to the barrier as of 1.2387 (the downtrend line from July). On the bear side, a close below the 30-day SMA (1.2308), would probably drag the cross further downwards to the key support area as of 1.2235.
The EUR/CHF is trading around 1.2317, being captured amidst the confluence of the 200 – daily SMA (1.2311), 50 – daily EMA (1.2319) and the 20 – daily EMA (1.2318) at the area as of 1.2311-1.2319.Regarding the data, today’s Euro zone retail sales fell by 0.6% on a monthy basis slightly more than had been expected, showing that growth momentum in consumer spending remains fragile and weak. Earlier the Euro zone PMI data were announced at slightly better levels, therefore against this backdrop, Draghi might be enforced to keep the door wide open to a potential interest rate cut at tomorrow’s ECB meeting.
Technical Aspects on the EUR/CHF
The cross should manage to make a decent close above the 200-hourly SMA (1.2325) to trade higher to the barrier as of 1.2387 (the downtrend line from July). On the bear side, a close below the 30-day SMA (1.2308), would probably drag the cross further downwards to the key support area as of 1.2235.