USDCHF Weekly Forex Forecast – 6th to 10th August 2018
Fundamentals Outlook: The economic calendar for the week ahead takes a quiet turn. No major releases of importance are lined up this week. From the U.S. the producer prices index data is due to come out on Thursday followed by the consumer price index data on Friday. Given the recent slowdown in the core PCE data for the second quarter, investors will be looking for any further clues of potential weakness in the consumer price reports. Elsewhere, data from the Eurozone is limited to the German industrial production and trade balance figures. The eurozone Sentix investor report and factory orders from Germany will be due earlier in the week. A quiet week from Japan will see only the Bank of Japan releasing its summary of opinions.
Chart set up: USDCHF continues to trade sideways with last week’s price action first sending the currency pair lower to test the support at 0.9870. A rebound off this level pushed the currency pair higher as USDCHF was seen testing the resistance level at 0.9962 region.
Key support/resistance levels:
Support: 0.9907; Resistance: 0.9962
Commentary: In the near term, the USDCHF could post declines back to 0.9907. This could potentially mark a right shoulder of the inverse head and shoulders pattern being formed. A rebound off the support could signal an upside breakout. The main resistance is seen at 0.9962.
A successful upside breakout from the neckline resistance level could signal USDCHF to post further gains. The minimum expected target is anticipated to be around 1.0019. However, if USDCHF fails to reverse near 0.9905, the inverse head and shoulders pattern would be invalidated. For the week ahead, the USDCHF currency pair is expected to be flat.
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