The EUR/CHF extended the upside momentum and has touched a very strong dynamic resistance. Price is trading in the green, but remains to see if will have enough directional energy to resume the upside movement or will decrease a little to recapture more directional energy before will try to climb towards the 1.1536 previous high.
Price is trapped within an ascending channel, but now has reached the upside line of this pattern, so a minor retreat is favored, but it is not mandatory because the rate could resume the bullish momentum.
The price retreated a little as the Swiss Franc has received a helping hand from the Switzerland PPI indicator, which has increased by 0.3% in August, beating the 0.2% estimate and the 0.0% growth in the former reading period.
However the Euro received support from the economic data as well, the Industrial Production increased by 0.1% in July, matching expectations, while the Employment Change surged by 0.4% in the Q2, beating the 0.3% estimate. Moreover the German WPI increased by 0.3%, more versus the 0.1% estimate, while the German Final CPI rose by 0.1%, matching the 0.1% estimate.
Price has registered an amazing jump above the WL4 and above the WL2 and now has reached the first warning line (wl1) of the minor ascending pitchfork. A failure to take this out will signal a minor drop towards the WL2 and towards the upper median line (uml) of the minor ascending pitchfork.
Is somehow expected to climb much higher after the retest of the upper median line (uml) of the minor ascending pitchfork. Resistance can be found also at the 1.1536 previous high and at the fifth warning line (WL5) of the major descending pitchfork. Technically, a reversal could occur from the WL5, but is premature to talk about this right now.
EUR/CHF is expected to climb much higher on the short term, but a failure to close above the 1.1536 previous high will signal an exhaustion and a potential corrective phase.