AUD/CHF Bearish Outside Bar Near Major Support Signals Downtrend Continuation

AUD/CHF – Technical Analysis for Top Binary Options brokers

Switzerland – Producer Price Index (PPI)

Today, 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.

The top Binary options brokers 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) increased by 0.1% and the forecast for this month is that it would remain unchanged for the time being.

Australia – Unemployment Rate

On Thursday, at GMT 2:30 a.m., the Australian Bureau of Statistics will release the national unemployment rate, which measures the percentage of total work force which remained unemployed over the past month.

Binary options investors consider the unemployment rate to be one of the most important fundamental indicators of the Australian economy because one of the main goals of the Reserve Bank of Australia is to keep the unemployment as low as possible. Although this is a lagging indicator, analyzing this data can help Forex traders predict future interest rates and inflation situation in the country.

Last month, the unemployment rate in Australia came out at 5.9% and the forecast for this month is also set at 5.9%.

AUD/CHF Forecast

AUD/CHF Analysis for top binary options brokers

Since breaking below the uptrend line on March 2, 2017, the AUD/CHF price has declined by around 400 pips. Last week, the AUD/CHF formed a bullish pin bar after finding a strong support around 0.7270 level, which then started a bullish retracement that pushed the price above the important resistance near 0.7380. But, last Friday, the AUD/CHF formed a bearish outside bar (BEOB), which signaled that the downtrend may resume very soon.

As the Australian unemployment rate is expected to remain unchanged at 5.9% and the Swiss PPI is also expected to remain unchanged, we believe the fundamental outlook for AUD/CHF is going to remain tentative this week. However, if the AUD/CHF price penetrates below the low of the bearish outside bar formed at the end of last week, it would likely push the price below the support around 0.7380 level, which may attract additional bearish momentum in the market.

Hence, Australian binary options traders should look out for trading opportunities below this major support level around 0.7380, which is situated very close to the low of the BEOB formed on May 12, 2017.

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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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