9 Oct 2013
EUR/CHF above 1.2300 as August added a more positive outlook on Germany
FXstreet.com (Athens) – The EUR/CHF broke the 1.2300 handle again, after the data released in Germany earlier showed that the power horse is gradually leaving the disappointing July numbers behind.
EUR/CHF spikes above 1.2300 as August gives a shiny outlook on Germany’s industry
The EUR/CHF has been trading steadily upwards since the opening of the Asian trading session except for a couple of hours in the mid European trading session. However, after the power horse of Euro land released data that painted a solid growth outlook – totally out of the blue – the EUR/CHF gained solid support and is now hovering again above 1.2300 handle. Being more précised, industrial production in Germany increased by 1.4% on a monthly basis from a 1.1% decline in July, while it showed that it is up 0.3% on a yearly basis.
Technical Outlook on EUR/CHF
Our personal aspect of view remains the same; will the cross manage to overcome the 1.2317 area where the 30 daily MA standing over, while also it is just above the crucial 1.2315 level of the Fibonacci retracement as of 1.2215-1.2415? We should take upon major consideration the area as of 1.2312-1.2317 as also in 1.2312 we will find the 200-daily MA. Thus, the upper trend movement should overcome the above reef levels, in order the cross to trade higher. Karen Jones, Head Technical Analyst at Commerzbank mentions that the “EUR/CHF tested and rebounded off the 1.2217 June low. Rallies are now expected to remain capped by the 1.2312 200 day ma. Note only above 1.2315 will alleviate immediate downside pressure. This leaves the market vulnerable on the downside to further losses and it targets 1.2135/32, the April lows.
EUR/CHF spikes above 1.2300 as August gives a shiny outlook on Germany’s industry
The EUR/CHF has been trading steadily upwards since the opening of the Asian trading session except for a couple of hours in the mid European trading session. However, after the power horse of Euro land released data that painted a solid growth outlook – totally out of the blue – the EUR/CHF gained solid support and is now hovering again above 1.2300 handle. Being more précised, industrial production in Germany increased by 1.4% on a monthly basis from a 1.1% decline in July, while it showed that it is up 0.3% on a yearly basis.
Technical Outlook on EUR/CHF
Our personal aspect of view remains the same; will the cross manage to overcome the 1.2317 area where the 30 daily MA standing over, while also it is just above the crucial 1.2315 level of the Fibonacci retracement as of 1.2215-1.2415? We should take upon major consideration the area as of 1.2312-1.2317 as also in 1.2312 we will find the 200-daily MA. Thus, the upper trend movement should overcome the above reef levels, in order the cross to trade higher. Karen Jones, Head Technical Analyst at Commerzbank mentions that the “EUR/CHF tested and rebounded off the 1.2217 June low. Rallies are now expected to remain capped by the 1.2312 200 day ma. Note only above 1.2315 will alleviate immediate downside pressure. This leaves the market vulnerable on the downside to further losses and it targets 1.2135/32, the April lows.