USDCHF Weekly Forex Forecast – 15th to 19th Oct 2018
Fundamentals Outlook
The markets move into the third week of October with economic data continuing to lay the picture for the third quarter economic performance. The data from the Eurozone will cover mostly the business and economic sentiment. But this will shed light on how the economy is shaping up. Overall economic data is relatively quiet especially from Switzerland and Japan. The national CPI report from Japan will be coming out over the week. The Eurozone will report its inflation figures for the month of September
Meanwhile, the FOMC will be releasing its meeting minutes. No surprises are expected as the central bank is expected to push with one more rate hike in December. Economic data from the U.S. will include the retail sales report which is forecast to rise sharply on a month over month basis. Other data over the week includes forward looking indicators and housing market reports. The flows will of course be determined by the general market sentiment. The U.S. dollar continues to remain on the forefront. Investors will be looking to the data on the back of last week’s sell off.
Chart set up: Despite the weakness in the U.S. dollar, the Swiss franc failed to capitalize on the weakness. Price action in USDCHF remained fairly flat over the week. Price action seems to be comfortable trading within the range of 0.9967 and 0.9803.
Key support/resistance levels:
Support: 0.9803; Resistance: 0.9967
Commentary:
The USDCHF could continue trading within the established corridor in the near term. We continue to anticipate that the USDCHF could potentially rise to test the resistance level at 0.9967. However, in the event that the currency pair weakens, we expect a possible decline on a break down below the support at 0.9803. In the near term, expect the flat price action to continue. For the week ahead, USDCHF is expected to be flat.
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