Note: The USD/CHF forecast is updated during every weekend by taking into account the various factors which are expected to affect the relative price action of Swiss franc and the U.S. dollar.
USD/CHF Weekly Outlook And Predictions
USD/CHF went as low as 0.8856 before falling into a sideways mode and closing for the week at 0.8878.
There is no change in the overall bearish outlook for USD/CHF however initially we stay neutral. Except for one occasion when the pair had spiked to a low of 0.8799 on December 27, 2013, the price-action has been above 0.8832 of December 17, 2013. A decisive break of this support is required to expect the fall to continue. With this support in place we expect some sideways moves or even an upward consolidation.
On the upside the fist important resistance is expected in the range of 0.8937 to 0.8951. A break there should bring further consolidation towards the 55-day EMA resistance which is currently at 0.8982. In any case the near-term outlook will stay bearish as long as the price-action stays below 0.9038. Only a break of that resistance will indicate a short-term bottom to bring further consolidation towards 0.9120 with a minor resistance at 0.9081 on the way.
With the immediate resistances, as indicated above, a decisive break below 0.8832 will confirm that the bearish sentiments are intact for the near-term also. Such a break should extend the declines first for a retest of 0.8799. However on the down side a decisive break below 0.8763 will still be required to expect some substantial declines towards 0.8568 to 0.8630 support as we had indicated in an old post of December 16, 2013 titled "Is USD/CHF heading for a nosedive
". 0.8568 was a strong support during the week of October 24,2011 and this level is slightly above the 50% retracement of the gains from 0.7069 to 0.9972, which is at 0.8520. Please also check the post titled "USD/CHF 2014 Outlook – Who Is Winning As The Safe Haven Currency?
" to check on all these indicated levels.
Move from 0.7069 to 0.9972
Please check the relative strengths of recent economic releases from U.S.A. and Switzerland:
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This update on USD/CHF outlook is written by the analysts of ForexAbode.com. Do contact us for any questions, suggestions or feedback.