Forex Market: CHF/NOK daily forecast

During yesterday’s trading session CHF/NOK traded within the range of 6.9253-6.9571 and closed at 6.9349.

At 6:16 GMT today CHF/NOK was gaining 0.13% for the day to trade at 6.9433. The pair touched a daily high at 6.9451 at 5:50 GMT.

Fundamental view

Switzerland

The gauge of economic sentiment in Switzerland probably improved to 5.0 in July, according to the median experts’ forecast. In June, the index came in at 4.8.

The ZEW (Zentrum für Europäische Wirtschaftsforschung) economic expectations index is published monthly. 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 figure indicates that the proportion of optimists is larger than that of the pessimists.

The ZEW is due to release an official report at 9:00 GMT. A higher-than-expected reading would certainly bolster demand for the Swiss franc.

Norway

At 8:00 GMT Statistics Norway is to report on nation’s trade balance during June. The surplus on Norway’s trade balance was 26.79 billion NOK during May. As an indicator the trade balance reflects the difference in value between exported and imported goods during the respective period. The External Merchandise Trade encompasses crude oil, natural gas, as well as ships and oil platforms alongside “traditional goods”. Export demand has a direct link to demand for the national currency and also causes an impact on levels of production. In case Norway’s trade balance surplus expanded more than projected last month, this would have a bullish effect on the krone.

Technical view

According to Binary Tribune’s daily analysis, in case CHF/NOK manages to breach the first resistance level at 6.9529, it will probably continue up to test 6.9709. In case the second key resistance is broken, the pair will probably attempt to advance to 6.9847.

If CHF/NOK manages to breach the first key support at 6.9211, it will probably continue to slide and test 6.9073. With this second key support broken, the movement to the downside will probably continue to 6.8893.