Forex Market: EUR/CHF daily trading forecast

Yesterday’s trade saw EUR/CHF within the range of 1.2146-1.2097. The pair closed at 1.2122, shedding 0.06% on a daily basis.

At 8:07 GMT today EUR/CHF was down 0.03% for the day to trade at 1.2118. The pair held in a daily range between 1.2114 and 1.2126.

Fundamental view

Euro zone

Spain’s statistics agency (Instituto Nacional de Estadistica) reported at 7:00 GMT that the country’s industrial production expanded at an annualized 0.6% in August, following an upward-revised 0.9% growth in the previous month. Analysts had expected Spain’s industrial output to have grown by 1.4%.

Yesterday, Destatis reported that Germany’s industrial production contracted by 4% in August, the most since 2009, in the latest sign of deteriorating economic conditions in the leading EU economy, and the Eurozone as a whole. This comes after a downward-revised 1.6% expansion in July, while analysts had projected a moderate 1.5% decline in industrial output.

Switzerland

Switzerlands State Secretariat for Economic Affairs (SECO) reported at 05:45 GMT that the Swiss unemployment rate remained unchanged for the seventeenth consecutive month in September at a seasonally adjusted 3.2%, matching projections, while the unadjusted unemployment rate held steady at 3%, also meeting economists forecasts.

Technical view

According to Binary Tribune’s daily analysis, the central pivot point for the pair is at 1.2122. In case EUR/CHF manages to breach the first resistance level at 1.2146, it will probably continue up to test 1.2171. In case the second key resistance is broken, the pair will probably attempt to advance to 1.2195.

If EUR/CHF manages to breach the first key support at 1.2097, it will probably continue to slide and test 1.2073. With this second key support broken, the movement to the downside will probably continue to 1.2048.

The mid-Pivot levels for today are as follows: M1 – 1.2061, M2 – 1.2085, M3 – 1.2110, M4 – 1.2134, M5 – 1.2159, M6 – 1.2183.