AUD/CHF Likely Retest Key Resistance Amid Forecast of Slowing Swiss Economic Barometer

Home » AUD/CHF Likely Retest Key Resistance Amid Forecast of Slowing Swiss Economic Barometer

Australia – Retail Sales

On Tuesday, at GMT 1:30 a.m., the Australian Bureau of Statistics released the national month-over-month retail sales figure. It measures the changes in the total value of all sales made at the retail level in the country over the past month.

Retail sales data are considered by binary options traders to be the primary gauge of consumer spending and confidence. When consumers are confident about their future financial situation, they tend to spend more.

Last month, the Australian retail sales value decreased by -2.7%. Analysts were expecting it to decline by -2.5% this month. However, it decreased by only -1.7%.

Switzerland – KOF Economic Barometer

On Thursday, at GMT 7:00 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, 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 113.5. The forecast for this month is set at a slightly lower reading of 110.3.

AUD/CHF Forecast

Since February 25, the AUD/CHF remained in a strong downtrend and formed a well-respected downtrend line. Over the last few months, it fell by around 10.30% or around 750 pips. On August 20, the AUD/CHF fell to 0.6513 and the RSI indicator turned oversold. Soon, it started a bullish retracement that pushed the price toward the previous swing high near 0.6790. Currently, it is trading just below the resistance near 0.6790.

The Australian retail sales fell by -1.7%, but it was much better than the consensus forecast. By contrast, analysts are expecting the Swiss KOF Economic Barometer to go down to 110.3. We believe it would set a bullish fundamental outlook for the AUD/CHF this week. Therefore, if the AUD/CHF closes above the resistance near 0.6790, it would likely attract additional bullish momentum in the market. However, keep in mind that the price needs to also clear the resistance near the downtrend line before any sustainable bullish run.

Hence, binary options traders should look out for trading opportunities above this major resistance level of around 0.6790.

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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