FxWirePro: EUR/CHF Daily Outlook

Chart - Courtesy Trading View 

EUR/CHF was trading 0.21% higher on the day at 1.0338 at around 11:20 GMT.

The pair is extending bounce off daily cloud support, breaks above 55-EMA, raising scope for further upside.

Data released earlier on Tuesday showed Eurozone Manufacturing PMI printed at 54.4 in May vs. 54.9 expected. While, services PMI fell to 56.3 in May vs. 57.5 expected.

On the other side, German Preliminary Manufacturing PMI unexpectedly rose in May, provides a strong tailwind for the pair.

The preliminary manufacturing activity report from S&P Global/BME research showed on Tuesday Germany Manufacturing PMI came in at 54.7 this month vs. 54.0 expected and 54.6 prior. 

Meanwhile, Services PMI dropped from 57.6 booked previously to 56.3 in May as against the 57.2 estimated, its lowest level in two months.

Germany Composite Output Index arrived at 54.6 in May vs. 54.0 expected and April’s 54.3.

EUR/CHF finds strong support at 50-DMA and daily cloud, weakness only on break below. Resumption of upside will see test of 200-DMA.