AUD/CHF Turns Bearish Amid Increasing Swiss Economic Barometer

AUD/CHF – Technical Analysis for Binary Options Trading

Australia – Private Sector Credit

On Friday, at GMT 1:30 a.m., the Reserve Bank of Australia will release the month-over-month Private Sector Credit data, which measures the changes in the total value of new credit issued to consumers and corporations in the country over the previous month.

Binary options trading investors consider the private sector credit to be an important fundamental indicator of the Australian economy as borrowing and spending are highly correlated. Consumers and businesses only take out credit when they feel confident about their ability to pay it back in the future. Hence, it also acts as a measure of consumer and business confidence.

Last month, the private sector credit in Australia increased by 0.4% and the forecast for this month is currently set at an increase of 0.4% as well.

Switzerland – KOF Economic Barometer

Later, at GMT 7:00 a.m., the KOF Economic Research Agency will release its economic barometer index, which measures the changes in the level of a composite index.

Since the KOF develops this composite index by analyzing 219 different economic indicators, binary options investors consider this to be an important fundamental indicator regarding the Swiss economy.

Last month, the KOF economic barometer index reading came out at 101.6 and the forecast for September is currently set at a slightly higher reading, at 102.6.

AUD/CHF Forecast

AUD/CHF Analysis for binary options trading - 27th June 2017

Although the AUD/CHF remained bearish since early February, as soon as the pair reached near the 0.7150 level on June 2, it found a strong support. As a result, the AUD/CHF had a considerable retracement over the last few weeks, and last week, the pair went up to test the downtrend line.

However, by Wednesday last week, the AUD/CHF appeared to have resumed the downtrend, only to find a minor support near the 0.7315 level.

As the Australian private sector credit is expected to grow at the same rate as last month, at 0.4%, but the Swiss KOF Economic Barometer is expected to increase from 101.6 to 102.6, we believe it would likely set a bearish fundamental outlook for the AUD/CHF this week. Under the circumstances, if the AUD/CHF breaks below the support near 0.7315 level, it would likely find additional bearish momentum in the market.

Hence, Australian binary options trading investors should look out for trading opportunities below this minor support level around 0.7315.

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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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