Thursday, 9 January 2014

USD/CHF bullish move just started

Recovery in Europe benefits the export-oriented sectors of the Swiss economy. We could expect in 2014-2015, the global economy will shift into a higher gear. The economic recovery is now underway in the developed world and will gain additional momentum in the year of 2014. The US economy is expected to grow at a comparatively strong growth of 2.5% driven by private investments. The euro zone has the power to come out of its wounds. Germany is well on the way to healthy growth. In this year Switzerland is likely be one of the growth leaders among the export-oriented nations. If exports increase humbly, the GDP growth can be seen at 2-2.5%. About 95% of Swiss exports to China will benefit from a reduction of customs duties.
In the currency front, USD/CHF is trading at the level of 0.9112. The pair has been trying hard to break the 38.2% retracement level during the last couple of years. Its breakout from a wedge sign a good upward move coming in the future.
Support 0.8800
Resistance 0.9192, 0.9250

We recommend buying the USD/CHF pair with sl 0.8857 (38.2% for the higher targets 0.9838, 0.997. It is just starting the bullish run.


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