The EUR/CHF increased today and is trying to rebound after the yesterday’s impressive drop, technically, has come back only to test and retest some broken support levels. Price dropped below a major support level and now is trying to retest this level, we may have a great selling opportunity if the rate will be rejected by the broken dynamic support (support could turn into resistance). I’ve said in the previous article that we may have a selling opportunity these days because buyers seemed weak.
The Euro increased on the mixed Euro-zone data, the Flash Services PMI dropped from 56.3 points to 54.7 points in June, has come in much below the 56.2 estimate, signalling that the expansion has slowed down significantly in the services sector, while the Flash Manufacturing PMI increased from 57.0 points to 57.3 points, beating the 56.9 estimate, the manufacturing sector continues the expansion.
The German Flash Services PMI dropped from 55.4 to 53.7 points in June, even if the traders have expected to see an increase to 55.4 points, while the German Flash Manufacturing comes better versus the 59.1 estimate. Moreover the French data have come in mixed, the Flash Services was reported at 55.3, much below the 57.1 estimate and much below the 57.2 points in the former reading period, signalling that the expansion has slowed down, while the Flash manufacturing PMI increased from 53.8 points to 55.0, beating the 54.1 points.
Price has increased and now is testing the lower median line (lml) of the minor ascending pitchfork’s body, has tested also the upper median line (UML) of the major descending pitchfork, I’ve said in the previous article that we’ll have a selling opportunity if the rate will test and retest the confluence between the UML with the lower median line (lml) of the minor ascending pitchfork.
Another leg higher is off the table right now, could happen only if will jump and will stabilize above the upper median line (UML) again and above the fourth warning line (fourth descending dotted line), till then the perspective is bearish.