AUD/CHF Appears Bullish After Breaking Above Major Downtrend Line Last Week

Australia – CB Leading Index

Today, at GMT 3:30 p.m., the Conference Board Inc will release the month-over-month leading index for Australia, which measures the changes in the level of a composite index based seven other major fundamental indicators.

Since the CB leading index aggregates some of the other indicator data, binary options traders consider this to be an important representation of the overall Australian economy. However, since most of these data are previously released, the CB leading index tends to have a minimized immediate market impact.

Last month, the CB leading index decreased by -0.3% and if the trend continues, it would likely indicate a weakening Australian economy.

Switzerland – Trade Balance

Tomorrow, at GMT 7:00 a.m., the Swiss Federal Statistical Office released the monthly trade balance figure, which measures the difference in value between net import and export of goods over the past month.

Since the demand for export is directly correlated with the demand for the Swiss Franc, binary options investors analyze the monthly trade balance in order to gauge the strength of the CHF against other major currencies.

Last month, the Swiss trade balance figure came out at 2.16 billion and the forecast for this month is currently set at a much higher figure compared to April, at 3.14 billion.

Trade Recommendation for the AUD/CHF

AUDCHFDaily

After falling around 530 pips in the last two weeks of April, the AUD/CHF finally broke above the downtrend line last week. However, the pair found some strong resistance near the 0.7200 level and currently on a retracement move.

As the Swiss trade balance is expected to come way better compared to last month, there is a likelihood that the AUD/CHF may resume the downtrend this week. However, from a technical analysis perspective, once the price closes above last week’s high, it would attract additional bullish momentum in the market and the downtrend may turn into a larger retracement of the previous bearish swing.

Under the circumstances, it would be recommended that binary options traders consider placing a CALL order for the AUD/CHF with their binary options brokers once the price closes above the 0.7200 level.

Recommended Broker for Australian Traders: HighLow

Asif worked as a prop trader for almost a decade, and later he managed trading operations for one of the largest foreign exchange strategy developers in Europe. Currently, he works as a trading consultant to several brokers and writes on various tech and financial topics. You can reach him at contact@asifimtiaz.com

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Asif Imtiaz

Asif worked as a prop trader for almost a decade, and later he managed trading operations for one of the largest foreign exchange strategy developers in Europe. Currently, he works as a trading consultant to several brokers and writes on various tech and financial topics. You can reach him at contact@asifimtiaz.com

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