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Forex Market: EUR/CHF daily trading forecast

Friday’s trade saw EUR/CHF within the range of 1.2020-1.2030. The pair closed at 1.2021, unchanged on a daily basis.

At 7:27 GMT today EUR/CHF was up 0.03% for the day to trade at 1.2026. The pair broke the first key daily resistance and touched a daily high at 1.2029.


Euro zone

Sentix Investor Sentiment

Confidence among investors in the Euro zone probably continued to worsen during the current month, with the corresponding index coming in at a reading of -13.5. In November it stood at -11.87. If so, this would be the fourth consecutive month, during which the gauge occupied negative territory. The index is based on results from the SENTIX survey, one of the most prominent surveys, reflecting investors’ opinion in Germany. It encompasses 2 800 respondents, with 510 of them being institutional investors. Respondents present their expectations regarding ten different markets for a period of one and six months. Readings above zero indicate that respondents were predominantly optimistic, while readings below zero show pessimism. Lower-than-expected readings would have a bearish effect on the common currency. The official index value is due out at 9:30 GMT.


Consumer inflation

Annualized consumer inflation in Switzerland probably showed a flat performance in November, according to expectations, after showing no change in October as well. In October communication prices registered the largest fall (2.1% year-on-year), followed by health cost (1.2% drop), household equipment (-1.1%) and transport prices (-0.8%). At the same time, prices of alcoholic beverages and tobacco rose the most (1.3% year-on-year), followed by clothing and footwear prices (up 0.9%), housing and utilities (also up 0.9%) and food (a 0.8% increase).

On a monthly basis, consumer prices in the country probably remained flat in November, the same performance as in October.

The CPI measures the change in price levels of a basket of goods and services from consumer’s perspective and also provides clues over purchasing trends. In case annual consumer inflation accelerated above expectations and approached the inflation target set by the Swiss National Bank, this would have a positive effect on the franc. The Federal Statistical Office is to release the official CPI report at 8:15 GMT.

Pivot Points

According to Binary Tribune’s daily analysis, the central pivot point for the pair is at 1.2024. In case EUR/CHF manages to breach the first resistance level at 1.2027, it will probably continue up to test 1.2034. In case the second key resistance is broken, the pair will probably attempt to advance to 1.2037.

If EUR/CHF manages to breach the first key support at 1.2017, it will probably continue to slide and test 1.2014. With this second key support broken, the movement to the downside will probably continue to 1.2007.

The mid-Pivot levels for today are as follows: M1 – 1.2011, M2 – 1.2016, M3 – 1.2021, M4 – 1.2026, M5 – 1.2031, M6 – 1.2036.

In weekly terms, the central pivot point is at 1.2029. The three key resistance levels are as follows: R1 – 1.2038, R2 – 1.2055, R3 – 1.2064. The three key support levels are: S1 – 1.2012, S2 – 1.2003, S3 – 1.1986.

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