FxWirePro: EUR/CHF extends weakness for the 3rd straight session, euro under pressure after German GDP missed estimates

EUR/CHF chart - Trading View 

EUR/CHF was trading 0.13% lower on the day at 1.0999 at around 09:00 GMT, outlook bearish.

The single currency was under pressure after German first quarter GDP missed estimates.

Preliminary report published by Destatis showed on Friday that the German economy shrank 1.7% q/q in Q1 2021 when compared to the expectations of -1.5% and compared to +0.3% in the previous quarter.

Meanwhile, the annualized GDP rate fell by 3% in Q1 against the previous reading of -3.7% and beat market expectations of -3.2% contraction.

Also, Italy GDP contracted by 0.4% QoQ in Q1 but bettered estimates of -0.5% and -1.8% previous.

Support levels - 1.0996 (55-EMA), 1.0963 (38.2% Fib), 1.0943 (trendline), 1.0905 (50% Fib)

Resistance levels - 1.1022 (converged 5 and 20 DMA), 1.1035 (23.6% Fib), 1.1147 (200W MA)

Summary: Technical bias for the pair is bearish. Price action has broken major trendline support and has dipped into daily cloud. The pair is currently testing 55-EMA support at 1.0996. Break below will see more weakness. Scope for dip till 38.2% Fib at 1.0963 ahead of trendline support at 1.0943.