Forex Market: USD/CHF daily trading forecast

Friday’s trade saw USD/CHF within the range of 0.9284-0.9335. The pair closed at 0.9312, losing 0.06% on a daily basis.

At 6:18 GMT today USD/CHF was up 0.16% for the day to trade at 0.9325. The pair touched a daily high at 0.9329 at 5:50 GMT.

Fundamental view

Switzerland

Annualized retail sales in Switzerland probably rose at a pace of 2.6% in July, according to the median estimate by experts, following another 3.4% climb in June. The latter has been the fastest annualized rate of increase since November 2013. This indicator reflects the change in the total value of inflation-adjusted sales by retailers in the country and provides key information regarding consumer spending trend, while the latter is a major driving force behind economic growth. In case retail sales index increased at a faster than expected pace, this would provide support to the franc. The Federal Statistical Office (FSO) is expected to release the official report at 7:15 GMT.

Also at 7:15 GMT the FSO is to report on the performance of the Consumer Price Index (CPI) in August. In July and June the annualized CPI remained flat, following a 0.2% gain in May. In July a drop in prices of clothing and house equipment was sufficient to offset higher costs of alcoholic beverages, tobacco and energy products. Prices of food and non-alcoholic beverages rose 0.3%, prices of alcoholic beverages and tobacco climbed 1.1%, costs of housing, water, electricity, gas and other fuels also added 1.1%, while costs of recreation and culture increased 0.8%. Prices dropped for clothing and footwear (1.6%), furnishings and household equipment (1.0%), health (0.8%), transport (0.5%) and communications (3.1%), according to data by the FSO. In case the annualized CPI continued to slow down, this would lead to a sell-off in the local currency.

Technical view

According to Binary Tribune’s daily analysis, the central pivot point for the pair is at 0.9310. In case USD/CHF manages to breach the first resistance level at 0.9337, it will probably continue up to test 0.9361. In case the second key resistance is broken, the pair will probably attempt to advance to 0.9388.

If USD/CHF manages to breach the first key support at 0.9286, it will probably continue to slide and test 0.9259. With this second key support broken, the movement to the downside will probably continue to 0.9235.

The mid-Pivot levels for today are as follows: M1 – 0.9247, M2 – 0.9273, M3 – 0.9298, M4 – 0.9324, M5 – 0.9349, M6 – 0.9375.

In weekly terms, the central pivot point is at 0.9273. The three key resistance levels are as follows: R1 – 0.9374, R2 – 0.9437, R3 – 0.9538. The three key support levels are: S1 – 0.9210, S2 – 0.9109, S3 – 0.9046.