USD/CHF Tests Key Support Near 0.9860 Amid Forecast of Declining Consumer Confidence in the US

USDCHF – Technical Analysis for Australian Binary Options

United States – CB Consumer Confidence

On Thursday, at 3:00 p.m., the Conference Board Inc. will publish its Consumer Confidence index. It measures the level of a composite index created from data based on a regular monthly household survey.

A higher consumer confidence usually indicates future consumer spending. So, it can significantly affect the overall economic conditions. Hence, Australian binary options brokers consider this kind of survey-based index to be a leading indicator of the economy.

Last month, the CB Consumer Confidence index came out at 135.7. This month, the forecast is that the index reading will come out slightly lower, at 133.0.

Switzerland – KOF Economic Barometer

On Friday, at GMT 8:00 a.m., the KOF Economic Research Agency will release its economic barometer index. It measures the changes in the level of a composite index.

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

Last month, the KOF economic barometer index reading came out at 99.1. The forecast for this month is currently set at a slightly lower reading, at 98.8.

USDCHF Forecast

USDCHF Technical Analysis for Australian binary options - December 24 2018

Since forming a bullish pin bar on September 21, the USDCHF has climbed up by around 585 pips. However, over the last few weeks, the pair started a bearish retracement and formed a downward sloping equidistant channel. Earlier last week, the USDCHF got rejected around the upper channel and fell towards the support level near 0.9860.

The Swiss KOF Economic Barometer may drop from 99.1 to 98.8 this month. On the other hand, analysts are expecting the US CB consumer confidence reading to drop from 135.7 to 133.0 as well. Given the low volume trading during the Christmas holiday, we believe the market’s movements will be dictated by technical factors as both fundamental indicators are set to decline. Based on recent bearish momentum, we believe there is a good chance that the USD/CHF will remain bearish this week. Therefore, if the USD/CHF closes below the support near 0.9860, it would likely attract additional bearish momentum in the market.

Hence, Australian binary options traders should look out for trading opportunities below this major support level around 0.9860.

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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