The currency pair is struggling to increase on the short term and to recover after the last drop. It is pressuring a dynamic resistance and could hit another one very soon. So, it remains to see what will really happen in the upcoming days because this could be only a temporary rebound. The rate could only test and retest the near term resistance levels before will drop again.

EUR/CHF has increased and has erased the morning losses, but remains to see if it will have enough energy to stay above a broken dynamic resistance.

The Euro-zone data have come in mixed today, the Flash Services PMI decreased from 54.2 to 54.4 as expected, while the Flash Manufacturing PMI has decreased much more than expected, from 55.1 to 54.6 points. Euro has received support from the German Flash Services PMI, which it has increased from 54.1 to 55.2 points, beating the 54.3 estimate, but unfortunately, the Flash Manufacturing PMI dropped from 56.9 to 56.1 points, even if the traders have expected to see a drop only to 56.5 points.

French Flash Services PMI indicator increased to 55.7, beating the 55.1 estimate, while the Flash Manufacturing PMI was reported at 53.7 points, higher versus the 53.5 estimate.

Price has failed once again to stabilize below the downside 50% Fibonacci line and now could reach and retest the median line (ML). I’ve drawn a minor ascending pitchfork to catch the upside momentum. So, the rate has jumped above the downside 50% Fibonacci line, but it remains to see if it will stabilize above it.

A failure to stabilize above the 50% line and jump and close above the ML could send the down again. You can see that the rate has increased and has reached the upside 50% Fibonacci line of the descending pitchfork. EUR/CHF needs to make a valid breakout above the ML to be able to increase further. A false breakout or a rejection will send the pair down again.