Forex Market: EUR/CHF daily trading forecast

Yesterday’s trade saw EUR/CHF within the range of 1.2002-1.2025. The pair closed at 1.2013, unchanged on a daily basis.

At 7:50 GMT today EUR/CHF was up 0.01% for the day to trade at 1.2014. The pair touched a daily high at 1.2015.

Fundamentals

Euro zone

German and Euro zone ZEW gauges of Economic Sentiment

The gauge of economic sentiment in Germany probably improved to 0.5 in November, according to the median forecast by experts. In October the index entered into negative territory for the first time since November 2012, slipping to a reading of -3.6. The indicator has been in decline since December 2013, when it stood at 62.0.

The ZEW (Zentrum für Europäische Wirtschaftsforschung) economic expectations index is published monthly. The study encompasses up to 350 financial and economic analysts. The indicator reflects the difference between the share of analysts, that are optimistic and those, that are pessimistic about the expected economic development in Germany over the next six months. A positive value indicates that the proportion of optimists is larger than that of pessimists. A ZEW reading of -100 suggests that all analysts are pessimistic about the current developments and expect economic conditions to deteriorate. A ZEW reading of 100 implies that all analysts are optimistic about the current situation and expect conditions to improve. A ZEW reading of 0 indicates neutrality.

The index of current assessment in Germany probably dropped to 1.8 in November from 3.2 in the prior month. If so, this would be the lowest index value since June 2010, when the indicator was reported at -7.9.

The ZEW Economic Sentiment index in the Euro zone probably climbed to 4.3 this month from 4.1 during October. The latter has been the lowest index reading since November 2012, when the indicator stood at -2.6.

In case the gauge of sentiment exceeded expectations, this would certainly have a positive impact on the common currency. The official data is scheduled to be released at 10:00 GMT.

Pivot Points

According to Binary Tribune’s daily analysis, the central pivot point for the pair is at 1.2013. In case EUR/CHF manages to breach the first resistance level at 1.2025, it will probably continue up to test 1.2036. In case the second key resistance is broken, the pair will probably attempt to advance to 1.2048.

If EUR/CHF manages to breach the first key support at 1.2002, it will probably continue to slide and test 1.2000.

The mid-Pivot levels for today are as follows: M1 – 1.1985, M2 – 1.1996, M3 – 1.2008, M4 – 1.2019, M5 – 1.2031, M6 – 1.2042.

In weekly terms, the central pivot point is at 1.2022. The three key resistance levels are as follows: R1 – 1.2042, R2 – 1.2076, R3 – 1.2096. The three key support levels are: S1 – 1.2000, S2 – 1.1968, S3 – 1.1934.