Last week was relatively calm for CHF: the only important releases were Swiss Consumer Price Index and unemployment data. The information was positive but the currency failed to actively react to it. The pair has been growing for over two weeks and has reached its four weeks maximum. This behavior can only be explained by the growth of US dollar . Yesterday US dollar fell even in view of quite positive data, such as the number of open vacancies in the US labor market that grew above outlooks.
From the beginning of the current week the pair has been corrected to its growth. The reason for it was the falling US dollar .
The only release from Switzerland expected this week is the Manufacturers Prices Index due tomorrow at 09:15 (GMT+2) with a positive outlook. Today the market will focus on the information about the US import and export at 14:30 (GMT+2) with a neutral outlook, statement by FOMC member Robert Kaplan at 16:00 (GMT+2), and a report on the fulfillment of the US federal budget at 20:00 (GMT+2). Yesterday Swiss financial institutions will not be working due to holidays.
This situation is likely to lead to the continuation of the pair's correction that started on Monday.
Support and resistance
Support levels: 1.0000, 0.9930, 0.9850, 0.9780.
Resistance levels: 1.0110, 1.0180, 1.0260, 1.0340.
Short positions may be opened at the market price with targets at 1.0000, 0.9930 and stop-loss 1.0110.
Alternatively, buy positions may be opened from 1.0000 with targets at 1.0110, 1.0180 and stop-loss at 0.9920.
The period of implementation is 1-2 days.