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28.12.201806:55 Forex Analysis & Reviews: Fundamental analysis of USD/CHF for December 28, 2018

Long-term review

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USD/CHF has been quite volatile and indecisive recently after the impulsive bearish pressure leading the price towards 0.9700 area with a daily close. USD having worse economic reports recently lead CHF to gain momentum in the volatile indecisive price action despite the recent rate hike decision and hawkish statement from the Fed.

After the Christmas holiday, USD has been quite weak with its approach leading to certain gains on the CHF side due to underperforming economic reports. Recently, the US CB Consumer Confidence report was published with a decrease to 128.1 from the previous figure of 136.4 which was expected to be at 133.7. Worse-than-expected economic reports added to more weakness for the currency. Today the US Pending Home Sales report is going to be published which is expected to increase to 0.9% from the previous value of -2.6% and the Natural Gas Storage is expected to increase to -50B from the previous figure of -141B.

On the other hand, CHF has been quite positive with the economic reports comparatively this week. Recently the Credit Suisse Economic Expectations report was published with a decrease to -22.2 from the previous figure of -42.3. Today, the KOF Economic indicator is going to be published which is expected to decrease to 98.7 from the previous figure of 99.1.

As of the current scenario, USD has been struggling with the recently published economic reports while CHF managed to sustain the positivity along with the gains in the process. Ahead of NFP next week, if USD underperforms in the process, further gains on the CHF side may be observed.

Now let us look at the technical view. The price has been quite volatile and indecisive recently between the range of 0.9850-0.9950. The price is currently pushing lower while being held by the dynamic level of 20 EMA which is expected to lead the price much lower towards 0.9550 support area in the future. A daily close below 0.9850 is expected to ensure further impulsive bearish momentum in the coming days.

SUPPORT: 0.9550, 0.9850

RESISTANCE: 0.9950, 1.0050

BIAS: BEARISH

MOMENTUM: VOLATILE

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