USDCHF Weekly Forex Forecast – 17th to 21st Sept 2018
Fundamentals Outlook
The week ahead will see a mix of both economic and monetary policy drivers pushing the markets. In the Eurozone the final inflation figures will be due on Monday for the month of August. The main highlight of the week will be the Bank of Japan’s monetary policy meeting that is due on Wednesday. No changes are expected from the BoJ which tweaked its policy just recently by pushing back the inflation target timeline. This is followed up a day later by the Swiss National Bank’s monetary policy meeting. The SNB is expected to keep the 3-month LIBOR unchanged at this week’s meeting as well. However, we can anticipate some changes in the near term especially with the ECB tightening its policy. From the U.S. the economic data covers mostly the housing markets. Given the recent decline in home sales the housing starts and building permits will give a glimpse into the construction activity in the sector.
Chart set up: The USDCHF currency pair attempted to rally following the initial test of support at 0.9659 level. However, the U.S. dollar eased pushing USDCHF back to the support level as a result. By Friday’s close, price action managed to rebound slightly.
Key support/resistance levels:
Support: 0.9659; Resistance: 0.9803
Commentary:
The USDCHF currency pair marked a second week of trading flat. The two weekly consecutive doji candlestick patterns indicate a possible reversal in the short term decline. Price action could most likely struggle to break the falling trend line. However, with the support level holding for now, we expect to see some short term upside in the currency pair. For the week ahead, USDCHF is expected to be bullish.
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