Forex Market: EUR/CHF daily outlook

During Friday’s trading session EUR/CHF traded within the range of 1.2179-1.2202 and closed at 1.2195.

At 6:34 GMT today EUR/CHF was gaining 0.03% for the day to trade at 1.2199. The pair touched a daily high at 1.2201 at 3:55 GMT.

Fundamental view

Frances final annualized Gross Domestic Product probably expanded 0.8% during the last quarter of 2013, which would match the preliminary value announced on February 14th. The quarterly GDP probably rose 0.3% in Q4, also matching the preliminary result. The official figure is expected to be announced at 6:45 GMT. A higher than projected pace of growth would support the euro.

Euro zones preliminary annualized index of consumer prices, evaluated in accordance with Eurostats harmonized methodology, probably slowed down to 0.6% in March from 0.7% in February. The rate would still remain quite far from European Central Banks inflation target of 2%, which may prompt the central bank to introduce additional measures at its upcoming policy meeting later in the week. The official data is expected at 9:00 GMT. In case annualized consumer prices slow down more than projected, this would have a bearish effect upon the euro.

Meanwhile, Switzerlands KOF (Konjunkturforschungsstelle) Leading Indicator probably improved to a reading of 2.05 in March from 2.03 in February. It includes three different modules – core GDP, which excludes sectors such as banking and construction and represents about 92% of the overall economic output, Banking module and Construction module. The report is scheduled for publication at 7:00 GMT. Higher than expected readings would boost demand for the Swiss franc.

Technical view

According to Binary Tribune’s daily analysis, in case EUR/CHF manages to breach the first resistance level at 1.2205, it will probably continue up to test 1.2215. In case the second key resistance is broken, the pair will probably attempt to advance to 1.2228.

If EUR/CHF manages to breach the first key support at 1.2182, it will probably continue to slide and test 1.2169. With this second key support broken, the movement to the downside will probably continue to 1.2159.