FxWirePro: EUR/CHF slumps over 0.60%, disappointing Eurozone PMI prints dent euro

Chart - Courtesy Trading View 

Spot Analysis:

EUR/CHF was trading 0.60% lower on the day at 0.9821 at around 09:40 GMT

Previous Week's High/ Low: 0.9949/ 0.9806

Previous Session's High/ Low: 0.9950/ 0.9862

Fundamental Overview:

Selling pressure around the single currency picked up pace following the disappointing release of the Eurozone PMI prints. 

S&P Global/BME German manufacturing and services sectors activity showed downturn gathered pace in July.

Eurozone Manufacturing PMI also unexpectedly contracted in July. Eurozone Manufacturing PMI arrives at 49.6 in July vs. 51.0 expected.

The bloc’s Services PMI dropped sharply to 50.6 in July vs. 52.0 expected and 53.0 prior. While, Composite slumped to 49.4 in July vs. 51.0 estimated and 52.0 previous. 

Technical Analysis:

- EUR/CHF is on a downward spiral for the sixth consecutive week

- 21-EMA is stiff resistance, recovery rejected at 21-EMA

- Momentum is bearish, Stochs and RSI are biased lower

- ADX supports downside, Chikou span is biased lower

Major Support and Resistance Levels:

Support - 0.9762 (Lower BB), Resistance - 0.9879 (5-DMA)

Summary: EUR/CHF trades with a bearish bias. Scope for test of 0.9762 (Lower BB). Bearish invalidation only above 21-EMA.