25.10.201815:47 Forex Analysis & Reviews: Fundamental analysis of USD/CHF for October 25, 2018

Long-term review

This information is provided to retail and professional clients as part of marketing communication. It does not contain and should not be construed as containing investment advice or investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance. Instant Trading EU Ltd. makes no representation and assumes no liability as to the accuracy or completeness of the information provided, or any loss arising from any investment based on analysis, forecast or other information provided by an employee of the Company or otherwise. Full disclaimer is available here.

USD/CHF has been quite impressive with the recent bullish pressure which lead the price towards 0.9980-1.0050 resistance area. CHF has been struggling to gain momentum over USD despite the recent mixed economic results from the US published recently.

USD has weakened recently on the back of economic reports, but it managed to gain momentum over CHF due to comparatively worse economic results. This week CHF did not have any impactful economic reports but next week the Credit Suisse Economic Expectations, SECO Consumer Climate and Retail Sales report are going to be published which might lead to certain gains. Today the US Core Durable Goods Orders report was published with a slight increase to 0.1% from the previous value of 0.0% but failed to meet the expected value of 0.5%. The Durable Goods Orders decreased to 0.8% from the previous value of 4.4% which was expected to decrease to -1.3% and the Goods Trade Balance report was published with a decrease to -76.0B from the previous figure of -75.5B which was expected to be at -74.9B. Moreover, the Unemployment Claims increased to 215k from the previous figure of 210k which was expected to be at 214k.

As of the current scenario, USD is expected to be stronger in the wake of the mixed economic reports while CHF being silent with no economic news. Next week volatility may increase in the market, but if CHF performs better than expected, only then certain bearish pressure may be observed in this pair or else USD may continue to dominate further in the future.

Now let us look at the technical view. The price is currently residing at the edge of 0.9980 area with a Bearish Divergence formation alongside. Though the price has been quite bullish recently, certain corrections are also observed along the way. As the price remains below 1.0050 area with a daily close, there are certain chances of the price pushing lower towards 0.9850 support area in the coming days.

SUPPORT: 0.9700, 0.9850

RESISTANCE: 0.9980, 1.0050

BIAS: BULLISH

MOMENTUM: VOLATILE

Back to the list

Open trading account

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.