Dmitri Lysenko
The ZEW Indicator of Economic Sentiment showed a sharp decline in June. It dropped from May’s -4.0 down to -43.4.
The managers of 70 major companies, who participate in the survey (it serves as the basis of the indicator) feel pessimistic about the Swiss economy, thus expecting stronger pressure from the continued eurozone crisis.
Negative sentiment is seen in all the major European economies, including Germany, Switzerland’s major importer. The overall eurozone index declined from -14.9 down to -44.5.
Forex.
According to the currency strategists of , the Swiss Franc keeps strengthening against the US Dollar. USDCHF is forming wave 4, В(С) or В a major upswing - wave А(С)/С of wave level Weekly. If the currency pair continues declining, it will meet support at 0,9385, a break below which will cancel the wave-4 scenario. Other levels of support are located at 0.9294 and the bottom of the MF sloping channel. A break above 0.9771 will resume the rally in the form of wave 5 or А inside the Hound of the Baskervilles pattern by Elder/MF. The closest level of resistance is located at 0.9881.
Dmitri Lysenko
