As the situation in the Swiss economy keeps improving, Wells Fargo expects moderate economic growth in Switzerland in 2013.
According to Well Fargo’s chief currency strategist, the Swiss Franc will remain stable against the Euro but may well weaken against the US Dollar.
The bank expects the existing rate of deflation to make the SNB maintain the current interest rates and policies. They say these factors will be the key market drivers in the near future.
Technically, they say, USDCHF may encounter resistance around 0.9383. EURCHF may have difficulty overcoming 1.2169.
The chart below, courtesy of , reflects the current state of affairs in the market of USDCHF. The Swiss Franc keeps strengthening against the US Dollar.
The closest level of support is 0.9042. The current bearish move will be completed as soon as the price overcomes the top of the MF sloping channel and consolidates above 0.9368 (as shown below).
