USD/CHF Climbs Up to Test Key Resistance as US Existing Home Sales Set to Grow

United States – Existing Home Sales

On Wednesday, at GMT 2:00 p.m., the US National Association of Realtors released the existing home sales number. It is an annualized number of residential buildings that were sold during the last month in the country. However, this figure excludes the number newly building constructions.

The sale of an existing home usually has a wide-spread positive ripple effect in the local economy. So, collectively this figure acts as an excellent leading indicator of the overall economic health of the country. Therefore, binary options traders consider the existing home sales number to be an important data as it tends to have a considerable market impact.

Last month, the US existing home sales figure came out at 5.46 million. The forecast for this month is currently set at 5.55 million.

Switzerland – Libor Rate

On Thursday, at GMT 7:30 a.m., the Swiss National Bank (SNB) will release the Libor rate. It measures the London interest rate for 3-month Swiss Franc deposits.

The overnight interest rate is the most important factor of a fiat currency’s valuation. Hence, binary options investors consider the Swiss Libor rate to be an important fundamental indicator of the Swiss currency.

Last month, the SNB kept the Libor rate at -0.75%. The forecast for this month is that the SNB will leave it unchanged at -0.75% for the time being.

USD/CHF Forecast

Since forming a bullish pin bar on February 16, the USD/CHF has climbed up by around 850 pips. Over the last four months, it also formed a well-respected uptrend line. On May 31, the USD/CHF broke below the uptrend line. However, it soon found support near the 0.9820 level and started a bullish retracement. During the last week, the USD/CHF climbed up to the resistance near 0.9985. Currently, it is trading just below the 0.9985 level and testing the resistance.

The US existing home sales figure might go up from 5.46 million last month to 5.55 million this month. On the other hand, analysts are expecting the Swiss Libor rate to remain unchanged at -0.75%. We believe it would set a bullish fundamental outlook for the USD/CHF this week. Therefore, if the USD/CHF closes above the resistance near 0.9985, it would likely attract additional bullish momentum in the market.

Hence, US binary options traders should look out for trading opportunities above this major resistance level around 0.9985.

BTC/USD Forecast

On June 11, it was revealed that Korean cryptocurrency exchange Coinrail was hacked. The news caused a widespread panic and the Bitcoin price turned bearish. However, over the last week, the BTC/USD failed to penetrate below the support level near 6150.

As a number of global regulatory authorities have tighten financial regulation regarding crypto currencies, the bearish momentum was already there. With the hack of Coinrail, it will likely add to the bearish momentum in the coming days. Therefore, if the BTC/USD price penetrates and closes below the support level near 6150, it will likely attract additional bearish momentum in the market.

Hence, US bitcoin traders should look out for trading opportunities below this major support level around 6150.

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