EUR/CHF has come back higher after a minor drop and is struggling to breakout above a very strong static resistance. Price rallied after a false breakdown below a very important dynamic support.

The rate has shown some exhaustion signs in the last weeks, but the bears weren’t so strong to keep the rate in the seller’s territory. EUR/CHF maintains a bullish perspective on the Daily chart, right now we don’t have any reversal signs.

Maybe will be better to stay away from this pair at this moment, hoping that we’ll have a fresh trading signal very soon. The pair plunged in the early morning, but has squeezed and is almost to erase the morning drop.

The German Import Prices rose by 0.8%, beating the 0.6% in the former reading period, while the German Gfk Consumer Climate was reported at 10.8. Moreover, the French Consumer Spending increased by 2.2%, more versus the 1.4% estimate, the indicator has increased again after the 2.1% drop in the former reading period.

On the other hand, the Switzerland KOF Economic Barometer was reported at 111.3 , much above the 110.3 estimate and compared to the 110.4 in the former reading period.

Price increased and tries to breakout above the 1.1734 static resistance. Remains to see what will happen in the upcoming hours because a valid breakout will confirm a further increase. However, a false breakout followed by a retest will signal a corrective phase.

We’ll see what will happen, but I want to remind you that the EUR/CHF is more a buy than a sell. You can go long on this pair after a valid breakout above the 1.1234 static resistance.

A selling opportunity will appear only after a valid breakdown below the upper median line (uml) of the minor ascending pitchfork. You can see that I’ve drawn a Rising Wedge on the Daily chart, we’ll have a larger drop if the pattern will be confirmed.