CHF: Swiss franc rebounded from the lows, although signals are ambiguous

At the Forex currency market Swiss Franc rate is going up slightly on Tuesday after seven sessions of decline. However this movement should be considered as technical rebound, since the pair USD/CHF has reached overbought levels.

Forex forecast: MACD indicator is in the positive area for the pair USD/CHF and it goes up, confirming a previous buy signal for the pair. Stochastic Oscillator is giving a similar signal today, being in the overbought zone.

Forex recommendations: in case of breakdown at the level of 0.9880, bullish sentiments for the pair can intensify which will lead buyers to the levels of 0.9930 and 0.9970.

In general situation in Swiss economy has not changed significantly

Important macro statistics which is scheduled to be published this week is as follows: data on the country’s trade balance and index of investors’ economic expectations ZEW will be released on Thursday. So, we can expect volatility increase for the pair on this day.

Looking at the movements of pair USD/CHF on the graph, there is impression of the Central Bank’s presence at the trading session, although there was no official statement on this matter. However, Franc continues to retreat, saving the economy of Switzerland from the excessive pressure.

Representative of Swiss National Bank Mr. Jordan noted not once that prolonged retention of the interest rates at the low level can cause additional risks for the economy. SNB intends to closely monitor the dynamics of the real estate sector. We would remind that Dantin noted earlier that crisis in the developing countries has slowed down and almost finished and economies of Japan and the West are recovering however recovery is very unstable. In his opinion estimation of the Swiss GDP for September is justified. Dantin noted that strong Franc and slow pace of the recovery in the world finance system have a negative impact on Switzerland.

Thus, while Franc is far from its highs, the SNB will not need to make decisions on the rate increase.

 

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