The level of investor trust in Switzerland saw a sharp drop in November, according to the latest report published by Credit Suisse and the Centre for European Economic Research (also known as ZEW). At the same time, the Swiss economy is reported to be showing signs of weakness, Masterforex-V Academy experts say.
In particular, the ZEW-CS index dropped from 18,3 points in October all the way down to zero this month. It should be noted that October’s readings were the highest ones since March 2014.
However, despite the poor report, the experts interviewed by the ZEW and Credit Suisse are not expecting a major decline in the Swiss economy. 60% of them assume that the economic activity in the country is going to remain relatively stable. The remaining respondents are at odds over the direction in which the Swiss economy is going to move in the near future.
FOREX
Meanwhile, Masterforex-V Academy reports that the Swiss Franc is still gaining value against the U.S. Dollar amid the poor economic figures, which means that USDCHF is still going down to new local lows.
For now, the price is developing a bearish move – wave A/B of level H3. There is a junior move inside of it – wave a(C )/C. The closest key point of support can be found around the bottom of the ascending MF sloping channel. A break below it will give way to further lows while showing signs of a possible major reversal.
Alternatively, on breaking above the top of the descending MF sloping channel and MF pivot 1.0200, we will see the current bearish move terminated.
