FxWirePro: EUR/CHF struggles at 110-EMA, poor German ZEW data weighs

EUR/CHF chart - Trading View 

Spot Analysis:

EUR/CHF was trading largely unchanged at 1.0857 at around 09:10 GMT

Previous Week's High/ Low: 1.0872/ 1.0742

Previous Session's High/ Low: 1.0879/ 1.0842

Fundamental Overview:

German industrial production increased 1.0% in July from June in calendar-adjusted terms, beating forecast for a 0.7% increase. On a year-on-year basis, output increased 5.7% in calendar-adjusted terms, Destatis said.

Eurozone Q2 Gross Domestic Product (GDP) seasonally adjusted QoQ beats estimates at -0.6% to print at 2.2%. YoY Q2 GDP was up 14.3%, above forecasts and previous quarter reading at 13.6%.

Eurozone ZEW Economic Sentiment Index  for September missed estimates for an increase to 52.2 from 42.7 in the previous month and slipped to 31.1.

German ZEW Economic Sentiment Index also falls further to 26.5 in September from 40.4 in the previous month, missing estimates at 30.0. The ZEW Current Situation for Germany came in at 31.9 in September vs. 29.3 in August.

Investors now await the European central bank policy decision for any clues which could impact euro price action.

Technical Analysis:

- EUR/CHF is extending sideways at 110-EMA resistance from the past 4 sessions

- Momentum is bullish, MACD and ADX support upside in the pair

- Price action has broken into the daily cloud and is above 200H MA

- GMMA indicator shows bullish shift in near-term moving averages on the daily chart

Major Support and Resistance Levels:

Support - 1.0825 (200H MA), Resistance - 1.0892 (200-DMA)

Summary: EUR/CHF struggles at 110-EMA resistance. Mixed economic data out from the euro area fails to provide any support. Focus on ECB policy meet due later this week for impetus. 

Decisive break above 110-EMA will see further gains. Scope for test of 200-DMA at 1.0892.