Forex Market: CAD/CHF daily forecast

During yesterday’s trading session CAD/CHF traded within the range of 0.8293-0.8318 and closed at 0.8306, adding 0.1% for the day.

At 7:44 GMT today CAD/CHF was gaining 0.2% for the day to trade at 0.8325. The pair touched a daily high at 0.8326 at 7:13 GMT, breaching the first key daily and the first key weekly resistance levels.

Fundamental view

The gauge of economic sentiment in Switzerland probably dropped to -1.0 in July, according to the median experts’ forecast. In June, the index came in at 0.1, that was the weakest since December 2012.

The ZEW (Zentrum für Europäische Wirtschaftsforschung) economic expectations index is published monthly. The indicator reflects the difference between the share of analysts that are optimistic and those that are pessimistic about the expected economic development in Switzerland over the next six months. A positive figure indicates that the proportion of optimists is larger than that of the pessimists.

The ZEW is due to release an official report at 9:00 GMT. A higher-than-expected reading would certainly bolster demand for the Swiss franc.

Technical view

According to Binary Tribune’s daily analysis, the central pivot point for the pair is at 0.8306. In case CAD/CHF manages to breach the first resistance level at 0.8318, it will probably continue up to test 0.8331. In case the second key resistance is broken, the pair will probably attempt to advance to 0.8343.

If CAD/CHF manages to breach the first key support at 0.8293, it will probably continue to slide and test 0.8281. With this second key support broken, the movement to the downside will probably continue to 0.8268.

In weekly terms, the central pivot point is at 0.8276. The three key resistance levels are as follows: R1 – 0.8316, R2 – 0.8379, R3 – 0.8419. The three key support levels are: S1 – 0.8213, S2 – 0.8173, S3 – 0.8110.