Technical Outlook: USDCHF broke out from the rising wedge pattern and posted steady declines to the support level near 0.9768 – 0.9621. Following this sharp decline, price rebounded to retest the breakout level near 0.9843. In the near term, expect USDCHF to slide back to the support level at 0.9678. For the most part, USDCHF is likely to remain range bound within the aforementioned levels.
Fundamental Outlook: The economic calendar from Switzerland is limited to the PPI data on Monday which is expected to show a decline of 0.20% although it is unlikely to be a major market moving event. USDCHF could most likely pick up volatility starting from Tuesday’s US inflation report and housing data with near term bias likely to be established mid-week.
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