USD/CHF Set to Test Resistance Near 1.0025 As US Economic Growth Continues

Switzerland – Foreign Currency Reserves

On Tuesday, at GMT 5:45 a.m., the Swiss National Bank will release its foreign currency reserves figure. It measures the total value of foreign currency reserve held by the central bank.

The currency reserve usually goes down when the Swiss National Bank tries to defend the rate of the Swiss France in the open market. It happens when the demand for the CHF is low. Hence, this figure can indicate how actively the central bank is participating in the market. Therefore, binary options investors consider this an important fundamental indicator of the CHF’s future directional movement against other major currencies.

Last month, the Swiss foreign exchange reserves figured came out at 738 billion. This month, analysts are expecting the figure to come out at 757 billion.

United States – Producer Price Index

On Wednesday, at GMT 12:30 p.m., the US Department of Labor will release the Producer Price Index (PPI) figure. It measures the changes in the price of products and services bought by manufacturers and service providers in the country.

The higher cost of production is usually passed on to the consumers. So, a rise in the producer price index indicates future inflation. Hence, this data is vital for binary option trading as it is used by binary options traders as a leading indicator of the overall US economy.

Last month, the US month-over-month PPI increased by 0.3%. It indicated inflationary pressure on the economy. Analysts are expecting that this month it will increase at a lower rate, by 0.2%.

USD/CHF Forecast

Since forming a small bullish pin bar on February 16, the USD/CHF remained highly bullish. Over the last three months, the pair has climbed up by around 835 pips. This week, the USD/CHF reached near the historical resistance near 1.0030 level. So far, it has penetrated above the resistance level, but failed to close above it.

The US Producer Price Index may grow by 0.2% over the last month. On the other hand, the Swiss Foreign Currency Reserves is also expected grow by a small margin. As the US PPI data is more important, 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 1.0030, 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 1.0030.

BTC/USD Forecast

Since February 2018, the BTC/USD mostly remained range bound. During this time, it traded sideways between the 6530 and 11600 levels. Over the last three weeks, the BTC/USD turned bullish and formed a small uptrend line. However, after reaching near the intermediate resistance level around 9770, it appears to have reversed as the price fell to the uptrend line.

Meanwhile, news broke that Digital currency exchanger company Huobi is launching a $1 billion fund for Chinese blockchain companies. Huobi plan to start the fund to provide startups with technical and strategical support in order to enable them to test their products/systems using blockchain technology.

Any positive news about blockchain industry usually makes the BTC/USD turn bullish and we believe such development will help accelerate the BTC/USD bullish momentum this week.

Therefore, if the BTC/USD breaks and closes above the resistance near the 9770 level, it will likely find additional bullish momentum in the market.

Hence, US bitcoin traders should look out for trading opportunities above this major resistance level around 9770.

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