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The Swiss franc  showed little change against the dollar this week, closing at 0.9075.  The upcoming week  is  very quiet, with only  two releases this week. Here is an outlook for the Swiss events, and an updated technical analysis for USD/CHF.

Despite outstanding numbers for Industrial Production and strong Trade Balance figures, the Swiss franc lost a bit of ground against the dollar. However, if the economic numbers continue to impress, the market is bound to take note, and the swissie could make a move upwards.

UpdatesUBS Consumption dropped to 0.87, after holding steady at 0.92 for the previous two months. USD/CHF is steady, trading at 0.9036. The markets are waiting for the release of the KOF Economic Barometer later this week.  USD/CHF was up slightly, trading at 0.9081.

USD/CHF daily graph with support and resistance lines on it. Click to enlarge:  

  1. UBS Consumption Indicator: Tuesday, 6:00.  This  composite index is based on five consumer indicators. The index  has posted readings of 0.92 for two consecutive months.  A move upwards this month, close to the  important  1.0 level, would be bullish for the franc.
  2.  KOF Economic Barometer: Friday, 7:00.  This important economic index is based  upon 12 economic indicators.  The  February reading came in at -0.12.  The markets are calling for a slight improvement in  March, to 0.08. A reading in positive territory this month would be welcome news for the Swiss economy.

*All times are GMT

USD/CHF Technical Analysis

USD/CHF opened at 0.9157,  reaching a high of 0.9178.  The pair  dropped to    a low of 0.9067, as the  support line of 0.9050 (discussed last week)  held firm. USD/CHF closed the week down slightly, at 0.9067.

Technical lines from top to bottom:

We begin with resistance at 0.9510, which was last tested in January. Below, is the line of 0.9412, which acted as support last month, and is now in a resistance role. Next is the resistance line of 0.9306.  This is followed by resistance at 0.9250. Below, 0.9204   is providing weak resistance to the pair.

The support line of 0.9120 was breached this week,  on the downward swing by USD/CHF.  There is support at 0.9050, which could be tested on a further downswing by the pair.  This is followed by 0.8924.   Below is 0.8850, which  has acted in  a strong support role since November. Next is the line of 0.8768. This is followed by support at 0.8710. The final support line for now is 0.8637.

I am  neutral on USD/CHF.

USD/CHF has been choppy, and some strong Swiss economic figures last week failed to impress the markets. This week could see more of the same, barring some unexpected news from the US.

Further reading: