Forex Market: USD/CHF daily forecast

During yesterday’s trading session USD/CHF traded within the range of 0.8922-0.8957 and closed at 0.8936.

At 6:22 GMT today USD/CHF was losing 0.14% for the day to trade at 0.8924. The pair touched a daily low at 0.8920 at 3:35 GMT, breaching the first key support.

Fundamental view

United States

The monthly survey by Thomson Reuters and the University of Michigan may show that the final reading of the US consumer confidence improved to 82.0 this month from a preliminary reading of 81.2 estimated on June 13. The survey encompasses about 500 respondents throughout the country. The index is comprised by two major components, a gauge of current conditions and a gauge of expectations. The current conditions index is based on the answers to two standard questions, while the index of expectations is based on three standard questions. All five questions have an equal weight in determining the value of the overall index.

In case the gauge of consumer sentiment showed a larger improvement than projected, this would boost demand for the dollar. The official reading is due out at 13:55 GMT.

Switzerland

Switzerland’s KOF (Konjunkturforschungsstelle) Leading Indicator probably improved to a reading of 100.00 in June from 99.79 in the previous month. The indicator measures future trends of the overall Swiss economic activity, by capturing the movement of the GDP growth. 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 USD/CHF manages to breach the first resistance level at 0.8955, it will probably continue up to test 0.8973. In case the second key resistance is broken, the pair will probably attempt to advance to 0.8990.

If USD/CHF manages to breach the first key support at 0.8921, it will probably continue to slide and test 0.8903. With this second key support broken, the movement to the downside will probably continue to 0.8885.