The news took the pair higher and the move was extended following a decline in the Swiss Trade Balance and Import and Export figures this morning. Price looks to have lost momentum having met resistance at the hourly 200 SMA (0.9339) and is currently trading at 0.9337.
Franco Shao of ForexCycle.com notes that looking at a 4hour bar chat, price has broken above a downward trend line, suggesting that lengthier consolidation of the downtrend from 0.9607 is underway. He believes that “range trading (between) 0.9239 and 0.9350 would likely be seen in a couple of days.”
Calendar wise, the European agenda is almost concluded for the day with UK Retail Sales coming in mixed and soft, in line for YoY at 2.7% and 3.1%/3.2% YoY ex. Fuel alongside a successful Spanish bond auction. An unscheduled meeting of the European systemic Risk Board is due to take place whilst Van Rompuy and Barroso will meet China’s Wen at 11:30 GMT.
Equities remain in the red alongside the majority of commodities whilst Spanish and Italian 10 year yields have climbed 0.45% and 1.3% respectively this morning.