CHF: Swiss Franc tries to rebound

At the Forex currency market on Wednesday Swiss Franc is recovering slightly, however general tone of the trading is still negative.

Forex forecast: MACD indicator is in the positive area for the pair USD/CHF and it goes up, giving a pair buy signal. Stochastic oscillator has not formed a clear signal today, being in the overbought zone.

Forex recommendations: off the market.

Feasible event scenario at Forex: in case of breakdown at the level of 1.0000 the pair will go to 1.0050 and 1.0085. If the level of 0.9925 is exceeded traders’ targets will become the levels of 0.9900 and 0.9870.

Philipp Hilderbrand, the head of Swiss National Bank, said today that his belief in the stability of Eurozone remains unchanged. In his view, European leaders are able to adopt measures to restore financial stability which, in its turn, will reduce pressure on the CHF“. “I am convinced that European Union and Eurozone will cope with challenges. Stability of the Eurozone is an important factor which affects the Franc and economy.” –he emphasized in his speech.  

The CHF rose by 11% against the Euro since the beginning of the year because of financial problems in Eurozone. Hilderbrand also noted in the middle of the week that the regulator of Switzerland is still focused on the maintaining levels of price stability in the country while the Bank is ready to take the extreme measures if the need arises. It became known earlier that Swiss surplus of trade balance increased to 2.102 billion francs in October while a month earlier the index amounted to 1.690 billion francs.
 
Note that situation in Ireland can be favourable for the Franc – if investors continue to avoid risks, stability of the CHF will encourage its   growth.
The next meeting of National bank of Switzerland is scheduled for 16 December.

[More]