AUDCHF Awaits a Break Below 0.7340 to Gain Bearish Momentum

AUDCHF – Binary Options Technical Analysis

Australia – National Australia Bank (NAB) Limited Business Confidence Index

Tomorrow, at GMT 2:30 a.m., the National Australia Bank (NAB) Limited will release its monthly business confidence index figure. This figure measures the level of a diffusion index based on a survey of 350 businesses in Australia.

The survey asks respondents to rate the current business environment in Australia. Since businesses are the first to react to changing business conditions, the level of their sentiment regarding optimism and business confidence, binary options traders consider it as a leading indicator of the overall economic health in the coming months.

Last month, the NAB business confidence index came out at 4. If the figure stays the same this month or fluctuate lower than 4, it would likely put some additional bearish pressure on the AUD/NZD price.

Switzerland – Producer Price Index (PPI)

Later, at GMT 8:15 a.m., the Swiss Federal Statistical Office will release the month-over-month Producer Price Index (PPI), which measures the changes in the price of goods and raw materials bought by Swiss manufacturers during the previous month.

Binary options traders consider the Swiss Producer Price Index (PPI) to be a leading indicator of the consumer inflation because any substantial increase in the raw materials is passed on to the buyers of the finished products by manufacturers. Hence, an increase in PPI indicates rising prices at the consumer level, which contributes to overall national inflation.

Last month, the Swiss PPI (m/m) decreased by -0.1% and the forecast for September is set at an additional decrease of -0.2%.

Trade Recommendation for the AUDCHF

AUDCHF - Binary options analysis

Since forming a bullish pin bar on June 16, the AUDCHF has remained in an uptrend that once again pushed the price towards the resistance around 0.7550 level. During the last uptrend, the AUDCHF also formed a well-respected uptrend line, but it was broken last week. After the AUDCHF price fell around 90 pips last Friday, it finally found support around the 0.7340 level that seems to be holding the price from falling further down for the moment.

As the Swiss PPI is expected to further decline, the fundamental outlook for the AUDCHF would likely remain bullish during the first few days of the week. However, last Friday’s price action suggests that there could be a large number short orders below the support around 0.7340. If price breaks below this level, it would likely attract additional bearish momentum in the market.

Under the circumstances, it would be recommended that Australian binary options traders consider placing a PUT order for the AUDCHF with their binary options brokers as soon as the price and closes below the 0.7340 level on the daily timeframe.

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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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