The currency pair dropped today and erased some of the yesterday’s gains. EUR/CHF is pressuring a very strong static resistance, so only a valid breakout will signal a further increase on the Daily chart. The rate has rebounded after the corrective phase but is premature to talk about a larger upside movement as long as the rate is located below the 1.1830 highest high. Personally, I’ll stay away from this pair because we don’t have a trading signal at this moment, but I really hope that we’ll have one very soon.

The Swiss Franc increased also because the Trade Balance has come in better than expected, the trade surplus increased from 2.07B to 3.14B in February, even if the traders have expected to see a drop to 1.87B.

The Euro dropped also because the Euro-zone data have failed to impress today, the German PPI dropped by 0.1%, even if the traders have expected to see a 0.1% growth after the 0.5% growth in the former reading period, the German ZEW Economic Sentiment was reported at 5.1 points, below the 13.1 estimate and much below the 17.8 points in the former reading period, while the ZEW Economic Sentiment dropped unexpectedly lower, from 29.3 points to 13.4 points, much below the 28.1 estimate.

The rate has found temporary resistance at the 1.1734 static upside obstacle and now has slipped below the third warning line (wl3) of the former ascending pitchfork. Price failed to reach and retest the median line (ML) signaling an exhaustion, so the rate could come down to test and retest the lower median line (LML) of the minor ascending pitchfork. It remains to see what will happen because it could increase further if will stabilize above the third warning line (wl3) of the former ascending pitchfork.