USD/CHF Fundamental Analysis Jan. 19, 2012, Forecast
Economic Events:
08:30 USD Initial Jobless Claims 385.00K 399.00K
08:30 USD Continuing Jobless Claims 3590.00K 3628.00K
Initial Jobless Claims measures the number of individuals who filed for unemployment insurance for the first time during the past week. This is the earliest U.S. economic data, but the market impact varies from week to week.
Continuing Jobless Claims measures the number of unemployed individuals who qualify for benefits under unemployment insurance.
A higher than expected reading should be taken as negative/bearish for the USD, while a lower than expected reading should be taken as positive/bullish for the USD. If the report comes in under the 385K we can expect to see the USD fall against the Swissie, but if the report is at the 399K level or above expect to see the USD rally and trend upwards on solid economic news.
Analysis and Recommendations:
Support and Resistance levels for tomorrows at S: 0.9333 0.9391 0.9441
R: 0.9549 0.9607 0.9657
The USD/CHF trading at 0.9434 range for today is among the major support at 0.9300 and the major resistance at 0.9660.
The short-term trend is to the upside with steady weekly closing above 0.8850 targeting 0.9950.
The ZEW index of Swiss economic expectations rebounded to minus 50.1 this month, from minus 72.0 in December, the strongest increase since April 2011.
The U.S. dollar was lower against the Swiss franc, as market sentiment strengthened on the back of expectations that China will ease monetary policy, but uncertainty over the ongoing debt crisis in the euro zone lingered.
The recent story about the IMF raising 1 trillion euro to help the EU countries has skewed the markets.
This is a wait and see scenario, watch tomorrows job reports from the US.
Originally posted here
