Forex Market: CAD/CHF trading forecast for Monday

During Friday’s trading session CAD/CHF traded within the range of 0.8237-0.8324 and closed at 0.8252, (the pairs weakest since June 19th) losing 0.76% and a 0.58% for the week.

Fundamental view

Canada

Annualized number of housing starts in Canada probably declined to 195 300 in July from 198 200 in the previous month. Housing starts are considered as a key indicator, reflecting nation’s housing sector’ resilience. In case the number of housing starts rose more than expected, this would provide support to the loonie. Canada’s Mortgage and Housing Corporation will release the official data at 12:15 GMT.

Switzerland

Retail Sales in the country probably rose 0.3% in July compared to a year ago, following an unexpected 0.6% drop in the previous month, that was the biggest since September 2011.

The index measures the change in the value of sales made by retailers in the country. The amount of sales includes indirect taxes, but without discounts. Revenue from wholesale and the provision of those services are not included. The study includes 850 different business activities. Dealers of vehicles are also included, with the exception of those selling motorcycles. This is the percentage change compared to the corresponding month of the previous year.

The Federal Statistical Office will publish an official report at 07:15 GMT.

Technical view

According to Binary Tribune’s daily analysis, the central pivot point for the pair is at 0.8271. In case CAD/CHF manages to breach the first resistance level at 0.8305, it will probably continue up to test 0.8358. In case the second key resistance is broken, the pair will probably attempt to advance to 0.8392.

If CAD/CHF manages to breach the first key support at 0.8218, it will probably continue to slide and test 0.8184. With this second key support broken, the movement to the downside will probably continue to 0.8131.