Weekly Technical Outlook: USD/CHF ;Market Forecasts for September 14th – September 18th

• Resistance level   0.9823
• Pivot Level  0.9765
• Support Level  0.9629, 0.9568, and 0.9530

Technical Analysis

 

USD/CHF is turned back to the downside for a test on 0.9629/0.9568 support zone. A decline is still expected further down side as long as 0.9823 resistance holds good. Meanwhile, levels above 0.9823 will turn bias back to the upside. In the bigger picture, current development suggests that a medium term downside is already taken place and a deeper correction could be possibly seen at 0.9629. There is a clear indication of trend reversal and a bearish momentum with pair rejecting the resistance levels strongly and this rejection on trend line suggests a stronger shift in momentum.

Focus will be on the structure of the current fall from the current levels. At this point, we’d expect resistance to hold retracement at the fall from 0.9765 which would extend to 0.9629 and later to 0.9568. Minor support areas could break here to see price at 0.9530. Meanwhile, levels above 0.9823 should extend the upward bias which shall dampen our short term view.

Outlook remains bearish for the week.

Economic

• Retail sales for the US, Industrial Production
• Capacity Utilization, Consumer Price Index
• Building Permits, Initial Jobless Claim with Fed Interest Rate Decision followed by
• FOMC Monetary Policy statement and Economic Projections
• Real Retail Sales, Producer and Import Price for Swiss
• ZEW Survey Expectations and SECO Economic Forecasts
• SNB Press Conference followed by Interest Rate Decision

Area of Interest

• Strong resistance at 0.9823 area rejected on trend line.
• Bearish pattern rejection strongly on the resistance levels.
• Price action closed below resistance level with two bar reversal and bearish momentum.
• At Flip Area on weekly time frame rejecting levels.

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