USD/CHF Fundamental Analysis Jan. 18, 2012, Forecast
Economic Events:
04:00 EUR Italian Trade Balance -0.94B -1.08B
The Italian Trade Balance measures the difference in value between imported and exported goods during the reported month.
A higher than expected reading should be taken as positive/bullish for the EUR, while a lower than expected reading should be taken as negative/bearish for the EUR.
05:00 CHF ZEW Expectations -72.00
The Zentrum fur Europaische Wirtschaftsforschung (ZEW) Economic Expectations Index rates the relative six-month economic outlook for Switzerland. On the index, a level above zero indicates optimism, below indicates pessimism. It is a leading indicator of economic health.
A higher than expected reading should be taken as positive/bullish for the CHF, while a lower than expected reading should be taken as negative/bearish for the CHF.
Analysis and Recommendations:
Support and resistance levels S: 0.9482 0.9504 0.953
R:0.9578 0.9600 0.9626
The U.S. dollar dropped to a 2day low against the Swissie, as market sentiment firmed up after data showed that China’s economy grew at a faster-than-forecast pace in the fourth quarter of 2011.
USD/CHF hit 0.9468 during European morning trade, the pair’s lowest since Friday; the pair subsequently consolidated at 0.9470, shedding 0.73%. The duet are trading at .9507 at this time
The pair was likely to find support at 0.9406, Friday’s low and resistance at 0.9573, the session high and an almost 11-month high.
The Producer and Import Price Index in Switzerland fell 2.3% (YoY) in December,
The pair is expected to find support at 0.9473, and a fall through could take it to the next support level of 0.9446. The pair is expected to find its first resistance at 0.9551, and a rise through could take it to the next resistance level of 0.9602.
Originally posted here
