Forex Market: EUR/CHF daily forecast

Yesterday’s trade saw EUR/CHF within the range of 1.2130-1.2142. The pair closed at 1.2131, losing 0.04% on a daily basis.

At 6:29 GMT today EUR/CHF was up 0.02% for the day to trade at 1.2135, which was also the daily high.

Fundamental view

Euro zone

French annualized final index of consumer prices for July probably confirmed the preliminary CPI of 0.5%, according to the median forecast by experts. The index measures the change in price levels of a basket of goods and services from consumer’s perspective and also reflects purchasing trends.

Nations annualized final CPI for July, evaluated in accordance with Eurostat’s harmonized methodology, probably also met the preliminary CPI of 0.6%. In case the CPI accelerated more than projected, this would have a bullish effect on the euro. The National Institute for Statistics and Economic Studies will release the official report at 6:45 GMT.

Spain’s annualized final index of consumer prices (CPI) in July probably matched the preliminary CPI of -0.3%, which was released on July 30th. The final annualized CPI for July, evaluated in accordance with Eurostat’s harmonized methodology, probably also confirmed the preliminary CPI estimate of -0.3%. The National Institute of Statistics is to release its official report at 7:00 GMT.

The seasonally adjusted index of industrial production in the Euro zone probably expanded 0.3% in June compared to a month ago, following a 1.1% drop in May. Annualized output probably increased at a pace of 0.2% in June. The index, reflecting business cycle, measures the change in overall inflation-adjusted value of output in sectors such as manufacturing, mining and utilities. In case industrial output expanded more than anticipated, this would support demand for the euro. Eurostat is to publish the official data at 9:00 GMT.

Switzerland

The gauge of economic sentiment in Switzerland probably plunged to -1.0 in July, according to the median forecast by experts. In June the index came in at a reading of 0.1. The ZEW (Zentrum für Europäische Wirtschaftsforschung) economic expectations index is published on a monthly basis. The study encompasses up to 350 financial and economic analysts. The indicator reflects the difference between the share of analysts, that are optimistic and those, that are pessimistic about the expected economic development in Switzerland over the next six months. A positive value indicates that the proportion of optimists is larger than that of pessimists. A ZEW reading of -100 suggests that all analysts are pessimistic about the current developments and expect economic conditions to deteriorate. A ZEW reading of 100 implies that all analysts are optimistic about the current situation and expect conditions to improve. A ZEW reading of 0 indicates neutrality. Lower than projected readings would have a bearish effect on the franc. The official data is scheduled to be released at 9:00 GMT.

Technical view

According to Binary Tribune’s daily analysis, the central pivot point for the pair is at 1.2134. In case EUR/CHF manages to breach the first resistance level at 1.2139, it will probably continue up to test 1.2146. In case the second key resistance is broken, the pair will probably attempt to advance to 1.2151.

If EUR/CHF manages to breach the first key support at 1.2127, it will probably continue to slide and test 1.2122. With this second key support broken, the movement to the downside will probably continue to 1.2115.

The mid-Pivot levels for today are as follows: M1 – 1.2119, M2 – 1.2125, M3 – 1.2131, M4 – 1.2137, M5 – 1.2143, M6 – 1.2149.

In weekly terms, the central pivot point is at 1.2147. The three key resistance levels are as follows: R1 – 1.2173, R2 – 1.2203, R3 – 1.2229. The three key support levels are: S1 – 1.2117, S2 – 1.2091, S3 – 1.2061.