Forex Analytics from LiteForex of 12.11.10: CHF: Swiss Franc grows, despite signals

At the Forex currency market Swiss Franc rate consolidates in pairing with the USD, demonstrating its qualities of the protective asset. At the same
time, technical indicators give a currency sell signal, which indicates the necessity to stay off the market.

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 is giving a
similar signal, being in the overbought zone.

Forex recommendations: off the market, considering external background. Feasible event scenario at Forex: in case of breakdown at the level of
0.9780 the pair will go to 0.9820 and 0.9880. Otherwise we will observe consolidation close to the current levels.
The state of economy in Switzerland has not changed significantly over 24 hours.

Note, that interest rate in Switzerland has remained unchanged for 19 months at the level of 0.25% per annum. The head of the Swiss National Bank
Hildebrand is confident that current level of the interest rate in Switzerland is still acceptable; he pointed however that current situation is ideal for the emergence of risks.

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 noticed that
strong Franc and slow pace of the recovery of the world finance system have a negative impact on Switzerland.

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