FxWirePro: EUR/CHF hits 6-week high, 200-DMA at 1.0892 in sight

EUR/CHF chart - Trading View 

Technical Analysis: Bias Bearish

- EUR/CHF extends bullish streak for the 4th straight session

- Price action has entered into daily cloud

- Momentum is bullish, Stochs and RSI are biased higher

- GMMA indicator shows bullish shift on the intraday charts

- Volatility is high and rising as evidenced by widening Bollinger bands

Data Watch:

Switzerland Q2 GDP grew 1.8% quarter-on-quarter, slightly lower than a 1.9% quarter-on-quarter rise expected.

On the year, Swiss GDP was up 7.7%, according to data from the State Secretariat for Economic Affairs (SECO).

Switzerland consumer prices rose 0.9% year-on-year in August and 0.2% compared with the month before, the Federal Statistics Office reported on Thursday.

On the other side, the EU Producer Price Index has come in above expectations at 12.1%y/y and 2.3% m/m from 11% y/y and 1.1% m/m expected.

Support levels - 1.0856 (110-EMA), 1.0818 (55-EMA), 1.0809 (5-DMA)

Resistance levels - 1.0880 (38.2% Fib), 1.0892 (200-DMA), 1.0902 (Cloud top)

Summary: Swiss GDP has increased albeit slower that expected, while the EU Producer Price Index has come in above expectations which has helped the Euro continue gains against the Franc.

EUR/CHF has reentered into the daily cloud. The pair is poised for further upside. Scope for test of 200-DMA at 1.0892.