Technical Outlook: USDCHF initially bounced off the 0.9871 support and then broke down with strong declines. Price action also broke through the next support at 0.9773 followed by 0.9700. Further downside could see USDCHF test 0.9650. The 4-hour Stochastics however is showing the potential for a bullish divergence to be formed which could see price retrace back to 0.9845. Look for price to close above 0.9700 for USDCHF to target 0.9773 followed by 0.9845.
Fundamental Outlook: Economic data from Switzerland is limited to just the monthly inflation and unemployment rate data, both of which are unlikely to move the markets much. However, with the Swiss franc still seen as a safe haven, currency flows could most likely keep the CHF elevated especially against the US dollar. With the US elections due on Tuesday, November 8th, traders should be bracing for some market volatility.
USDCHF Weekly Forex Forecast – 7th to 11th Nov 2016 – Mildly Bearish
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