USD/CHF Turns Bullish Amid Forecast of Improving US Non-Manufacturing PMI

NZD/CHF – Technical Analysis for US Binary Options Brokers

United States – ISM Non-Manufacturing PMI

On Wednesday, at GMT 2:00 p.m., the US based Institute for Supply Management (ISM) released its monthly Non-Manufacturing PMI figure, which measures the level of a diffusion index created by surveying purchasing managers. However, the ISM’s PMI figure excludes the non-manufacturing sector.

US Binary options traders consider the ISM Non-Manufacturing PMI figure to be a leading economic indicator because purchasing managers have the most updated view of the economy.

Last month, the ISM’s PMI figure came out at 53.9 and the forecast for this month is set at a slightly higher figure, at 55.5.

Switzerland – Foreign Currency Reserves

On Thursday, at GMT 7:00 a.m., the Swiss National Bank released its foreign currency reserves figure, which 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, when the demand for the CHF is low. Hence, this figure can indicate how actively the central bank is participating in the market and. Hence, binary options investors consider this to be 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 714 billion, compared to 693 billion in the previous month, which signaled that the SNB is trying to increasing their reserve.

USD/CHF Forecast

USD/CHF forecast for US binary options

Although USD/CHF broke above the downtrend line on July 27, 2017, the bullish momentum soon faded away and the pair once again turned bearish in the last month. However, last week, the USD/CHF formed a large bullish pin bar after finding support near the 0.9440 level, which has pushed the price towards the 0.9700 level.

As the ISM Non-Manufacturing PMI is expected to increase to 55.5 during the last month, but the Swiss foreign currency reserve had been going up for the last few months, which has an adverse effect on the Swiss Franc, we believe it would set a bullish fundamental outlook for the USD/CHF this week. Therefore, if the USD/CHF breaks above the 0.9700 level, 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 0.9700.

Top US Binary Options Brokers To trade USD/CHF

Top US Broker: BinaryMate

US Regulated Platform: NADEX

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