FXStreet (Edinburgh) – The Swiss franc is now shedding part of the recent strong gains vs. the euro, with EUR/CHF now returning to the 1.0340 area.
EUR/CHF upside capped by 1.0500
The cross is extending its correction lower from April/May tops in the 1.0500 neighbourhood, albeit keeping the trade within the broader 1.0250-1.0500 range. In the meantime, the safe haven CHF continued to gather traction in recent weeks following increasing concerns about the EU-Greek debt talks.
In the data front, the Switzerland economy contracted 0.2% inter-quarter during Q1 and 1.1% on a yearly basis, while the KOF Leading Indicator improved to 93.1 for the month of May vs. 90.0 expected and 89.8 previous.
EUR/CHF levels to consider
The cross is now up 0.02% at 1.0339 with the next hurdle at 1.0376 (daily cloud base) followed by 1.0382 (38.2% of 1.0505-1.0306) and finally 1.0405 (50% of 1.0505-1.0306) .On the other hand, a breach of 1.0305 (low May 7) would expose 1.0236 (low Apr.20/21) and then 1.0213 (low Jan.29).
(Market News Provided by FXstreet)