Technical Outlook: USDCHF has beeen range bound within 1.0060 and 0.9934 with no directional bias being established. This indicates that the sideways range will sooner or later breakout to establish the trend. For the moment, it is evident that resistance at 1.0100 - 1.0060 has been firm enough to pin down prices, meaning that there is increasing likelihood of a decline to the downside. Watch for support at 0.9934 which could be tested in the near term. A break down below this support could mean further declines in USDCHF towards 0.9683. Alternately, to the upside, only a break out above 1.0100 will signal any further gains in store. Fundamental Outlook: The Swiss franc turned stronger last week on a broad based risk aversion sentiment that hit the markets mid-week which eventually led to a flat close for USDCHF. The week ahead is quiet as far as the Swiss markets are concerned. Data points over the week include trade balance figures which is expected to show an increase of 3.03 billion, up from 2.72 billion. This came on increase of 3.8% exports while imports increased 4.1% or about 1.2% in real terms. The surplus of the trade balance is expected to rise in January as well. In the U.S., with the exception of the FOMC meeting minutes, it is a quiet week which could see most of the flows in USDCHF shape based on investors outlook. Previous USDCHF Weekly Forex Forecast

USDCHF Weekly Forex Forecast - 20th to 24th Feb 2017 - Bearish