Technical Outlook: USDCHF hit the resistance at 0.9843 last week but without any pull back to test support at 0.9700 – 0.9710. The strong rally started to weaken after prices formed a rising wedge pattern near the resistance. Expect a near term rally back to 0.9823 – 0.9843 following which, USDCHF should be looking to fall back to 0.9700 – 0.9710 support. The downside corrective bias remains invalidated if USDCHF manages to close strongly above 0.9843 on a daily session.
Fundamental Outlook: The economic data for the Swiss franc this week will see a speech by SNB Chairman Thomas Jordan, due to speak on Tuesday, September 6. Although Jordan is expected to keep the narrative the same and calling the Swiss franc overvalued, any potential hints at further LIBOR cuts could keep the markets on the edge. Later in the week, Swiss foreign currency reserves data is also expected to be released.
USDCHF Weekly Forex Forecast – 5th Sept to 9th Sept 2016 – BEARISH
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