Market Forecast 29/09/2017

The USD/CHF pair is attempting a downside break below 0.9700, and Gold is about to break a major resistance area at $1290.

USD/CHF Forecast – US Dollar Attempting Downside Break

Key Points

  • The US Dollar after trading towards 0.9770 found sellers against the Swiss Franc, and moved down.
  • The USD/CHF pair is currently attempting a break of a triangle pattern with support at 0.9705 on the hourly chart.
  • Today in Switzerland, the KOF Swiss Leading Indicator for Sept 2017 was released.
  • The forecast was slated for 105.5, but the actual was better as there was a rise from the last revised 104.2 to 105.8.

 

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The US Dollar made good ground this week and traded above the 0.9750 level against the Swiss Franc. The USD/CHF pair traded as high as 0.9768 before starting a downside correction.

The pair moved lower and broke the 38.2% Fib retracement level of the last wave from the 0.9641 low to 0.9768 high. It has opened the doors for more losses and the pair is currently attempting a break of a triangle pattern with support at 0.9705 on the hourly chart.

If sellers succeed in a close below 0.9700 and the 100 hourly simple moving average, there are chances of more declines in the near term towards 0.9680-0.9660.

 

KOF Swiss Leading Indicator

Today in Switzerland, the KOF Swiss Leading Indicator for Sept 2017 was released by the Swiss Institute for Business Cycle Research. The forecast was slated for a rise from the last reading of 104.1 to 105.5.

However, the actual result was above the forecast, as there was an increase to 105.8. The last reading was also revised up from 104.1 to 104.2. It means that the Barometer is still way above its long-term average.

The report added that “The strongest positive contributions come from the manufacturing sector. The indicators relating to the hotel and catering industry also show a slight upward tendency.”

The overall result was positive and it might push USD/CHF lower towards 0.9680-60 in the near term.

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Gold Price To Break $1290 and Test $1300?

Key Points

  • Gold price declined sharply from the $1313 swing high against the US Dollar.
  • The price found support and recently broke a bearish trend line with resistance at $1281 on the hourly chart.

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Gold price made a short-term top near $1313 against the US Dollar, and started a downside move. It broke a couple of important supports like $1310 and $1300 during the downside move.

Sellers even succeeded in clearing the $1280 support and a low was formed at $1277.76. Later, the price started a recovery and moved above a bearish trend line with resistance at $1281 on the hourly chart.

The price recently broke the 23.6% Fib retracement level of the last decline from the $1313 high to $1277 low. At the moment, buyers are attempting a break of another important resistance near $1290.

Once they succeed, there is a chance of an upside move towards the next resistance at $1300 in the short term. An intermediate resistance is near $1394 and the 100 hourly simple moving average. On the downside, the $1280 is a major support and buy zone.

 

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