Price decreased today, but maintains a bullish perspective, despite a minor decrease. Has squeezed in the last hours and erased the morning losses, price could increase as the Euro has started to increase versus its rivals in the second part of the day.
EUR/CHF touched a strong confluence area, so a minor decrease is natural, but this could be only temporary because most likely will resume the upside movement. Has increased sharply in the week as the CHF was bearish versus all its rivals, USD/CHF rallied even if the greenback was under selling pressure.
Price decreased only because the technical factors have taken the lead because the Euro-zone data have come in better than expected, the German Retail Sales increased by 1.1%, beating the 0.1%estimate and the 0.5% growth in the former reading period, while the Italian Monthly Unemployment Rate decreased unexpectedly from 11.3% to 11.1%, has come below the 11.2% estimate.
The Euro-zone Unemployment Rate decreased from 9.2% to 9.1%, even if the estimate was 9.2%, the Italian Prelim CPI surged by 0.1%, beating the 0.0% estimate and the 0.1% drop in the former reading period. Moreover, the CPI Flash Estimate increased by 1.3% in July, matching expectations, while the Core CPI Flash Estimate rose by 1.2%, more versus the 1.1% estimate and compared to the 1.1% growth in the former reading period.
Price has found temporary resistance at the second warning line (WL2) of the major ascending pitchfork and at the first warning line (wl1) of the minor ascending pitchfork, is pressuring the confluence between these two levels. A valid breakout above the confluence area will attract more buyers, which will lead the price towards fresh new highs.
Only a retest of the mentioned resistance levels followed by a decrease will signal a minor corrective movement. You should know that the perspective remains bullish despite a minor decrease, technically is expected to increase further on the medium term after the breakout from the long term extended sideways movement. Right now is better to stay away becasue we don’t have any trading opportunity.