EUR/CHF snaps four day rally

FXStreet (Mumbai) - The weaker-than-expected Eurozone preliminary PMI reports pushed the EUR/CHF pair lower after four straight sessions of gains.

Supported by hourly 50-MA

The spot was offered at the high of 1.055, but the losses were capped at the hourly 50-MA located at 1.0508. The average has acted as a strong support from the beginning of the week. A minor recovery from the low of 1.0508 stalled around 1.0520.

Later in the US session, the spot could be influenced by the US new home sales and manufacturing PMI report. Moreover, the EUR sellers continue to dominate the FX markets ahead of the weekend. Still, the pair appears poised the end the week higher.

EUR/CHF Technical Levels

The spot currently trades at 1.0516. The immediate resistance is seen at 1.0573 (May 2015 high), followed by a major resistance at 1.06 handle. On the other hand, support is seen at 1.0508 (hourly 50-MA) and 1.0450 (hourly 200-MA).

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