By TraderVox.com
Tradervox.com (Dublin) – The Swiss Franc strengthened against the US dollar as Draghi gave the market some hope of resolving the Euro zone debt crisis. The pair started the week at 0.9761 and rose to 0.9898 as the resistance line at 0.9915 held strong. The then dropped to 0.9697 and closed the week at 0.9691. Analysts are looking at some of the major events this week to see whether the cross will recapture its gains.
On Tuesday at 0545hrs, the Unemployment Rate will be the first event of the day and week from Switzerland. The Unemployment Rate fell last month to 3.9 percent and the market is expecting this to be maintained this time round. At 0700hrs, the Foreign Currency Reserves data will be released; the indicator climbed to CHF364billion in July. The last report of the day will be the nation’s CPI, which will be at 0715hrs. The previous reading recorded a drop to 0.3 percent, but the market was expecting a sharper decline of 0.5 percent. Finally, the last report from Swiss will be the SECO Consumer Climate report which will be released on Wednesday at 0545hrs. The indicator has been on the upward trend in the recent months and the market expects another gain of -4.
Some of the resistance levels to keep an eye on include the resistance line at 1.0136, which has not been breached since September 2010. The resistance line at 1.0066 has held strong since November 2010 and then there is parity which has been a strong resistance line. The resistance line at 0.9915 held firm last week as the pair came touching 0.9898 before dropping. Other resistance lines that have been broken in the past week include the 0.9783 and 0.9719. The support lines include the 0.9584, 0.9510, 0.9412, 0.9317, 0.9250, 0.9182, and 0.9093.
The market expects investor to choose the dollar over the Swiss franc this week as risk appetite diminishes in the market. The cross outlook is bullish for the week.
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