Topic: COZfx: USD/CHF weekly outlook
COZforex: The dollar moved higher against the Swiss franc on Friday, but remained below the 3 month peaks hit in the previous session as investors digested a mixed bag of US economic data.
USD/CHF ended Friday’s session at 0.8926, up 0.19% for the day, holding just below the highs of 0.8959 struck on Thursday, the most since February 13. Coz forex senior derivatives trader Daniel • Moloney said, USD/CHF is predicted to find support at 0.8871, and a drop through could take it to the next support line of 0.8838. Meanwhile, the pair is predicted to find its first resistance at 0.8949, and a rise through could take it to the next resistance line of 0.8994.
The dollar was boosted after the Commerce Department reported that US housing starts jumped 13.2% in April, after a 2.0% increase in March. It was the largest increase in five months, indicating that the economy is shaking off the effect of a weather related slowdown over the winter.
The upbeat housing data was offset by a report showing that US consumer confidence deteriorated in May. The University of Michigan's consumer sentiment index declined to 81.8, from 84.1 the month before. Analysts had expected a slight uptick to 84.5.
The dollar advanced to 3 month highs against Swissy in the previous session as sharp losses in the euro bolstered the greenback.
In the week ahead, investors will be looking to the minutes from the Federal Reserve's latest monetary policy meeting, due for release on Wednesday, for insight on the central bank's view of the economy.
(COZ forex UK)