Technical Outlook: The USDCHF posted strong gains over the month but price action is showing signs of stalling momentum near the current highs. We expect this to be an early indicator of a potential pull back in prices. The initial support level is fond at 0.9911 - 0.9892 level. A breakdown below this level could signal a correction to the 0.9651 - 0.9639 level of support which is pending a retest. Such a move could trigger a strong correction in prices and would require the support of underlying fundamentals to validate the correction. Alternately, watch out for the bullish flag pattern that is taking shape which could signal an upside breakout. Fundamental Outlook: The month of June will see the quarterly monetary policy meeting from the Swiss National Bank. The SNB is due to meet on June 21 to decide on its LIBOR rates. The Swiss LIBOR rate is expected to remain unchanged at -0.75% and the SNB officials are likely to stick to the baseline narrative. On the U.S. side of things, the FOMC meeting will be held on June 13. The Fed is expected to hike interest rates by 25 basis points at this month's meeting. This would bring the U.S. short term interest rates to 1.75% - 2.0%. The FOMC will also be releasing its quarterly projections on the economy and inflation. We expect to see continued strength in the USD. Previous USDCHF Monthly and Weekly Forex Forecast

USDCHF Monthly Forex Forecast for June 2018