Forex Market: CAD/CHF daily forecast

During Friday’s trading session CAD/CHF traded within the range of 0.8337-0.8362 and closed at 0.8352.

At 11:58 GMT today CAD/CHF was losing 0.25% for the day to trade at 0.8331. The pair breached the first and second key support and touched a daily low at 0.8326 at 9:20 GMT.

Fundamental view

Canada

Canadian Gross Domestic Product (GDP) probably expanded 0.2% in April compared to March, according to the median forecast by experts, following another 0.1% increase in March compared to February. Canada’s economy grew at an annualized pace of 2.1% in March. The GDP represents the total monetary value of all goods and services produced by one nation over a specific period of time. What is more, it is the broadest indicator of a country’s economic activity.

The report on GDP holds a lot of weight for traders, operating in the Foreign Exchange Market. It serves as evidence of growth in a productive economy, or as evidence of contraction in an unproductive one. As a result, currency traders will look for higher rates of growth as a sign that interest rates will follow the same direction. Higher interest rates will attract more investors, willing to purchase assets in the country, while, at the same time, this will increase demand for the national currency. If an economy is experiencing a robust rate of growth, the benefits will eventually affect the end consumer, because of the increased likelihood of spending, while through increased consumer expenditures economy has the potential to expand even further. Therefore, in case Canadian growth outpaced expectations, this would heighten the appeal of Canadian dollar. Statistics Canada is expected to release the official figure at 12:30 GMT.

Technical view

According to Binary Tribune’s daily analysis, in case CAD/CHF manages to breach the first resistance level at 0.8364, it will probably continue up to test 0.8375. In case the second key resistance is broken, the pair will probably attempt to advance to 0.8389.

If CAD/CHF manages to breach the first key support at 0.8339, it will probably continue to slide and test 0.8325. With this second key support broken, the movement to the downside will probably continue to 0.8314.