EUR/CHF Sinks to Lows Near 1.1050
After a failed attempt to extend the recent breakout of the 1.1100 handle, EUR/CHF has now returned to the mid-1.10s, or daily lows.
EUR/CHF lower post-CPI
The cross met further downside pressure as a positive start of European equities is weighing on the shared currency on Monday.
In
addition, higher-than expected CPI figures in the Alpine economy seem
to have lent extra support to the safe haven CHF, collaborating with the
decline. In fact, consumer prices tracked by the CPI rose at a monthly
pace of 0.3% in April and contracted 0.4% over the last twelve months,
bettering forecasts.
Next on tap in the euro area will be the
Investors’ Confidence measured by the Sentix index, expected at 6.1 for
the current month.
EUR/CHF significant levels
As
of writing the cross is losing 0.41% at 1.1051 and a breakdown of
1.0986 (20-day sma) would expose 1.0948 (low Apr.29) and finally 1.0942
(55-day sma). On the other hand, the initial up move aligns at 1.1090
(high May 9) ahead of 1.1108 (high Apr.29) and finally 1.1211 (2016 high
Feb.4).