USD/CHF May Turn Bullish amid Forecast for Increasing Pending Home Sales in the US

Switzerland – KOF Economic Barometer

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

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

In January, the KOF economic barometer index reading came out at 100.3 and the forecast for February is currently set at a slightly lower reading, at 99.1.

United States – Pending Home Sales

Later in the afternoon, at GMT 3:00 p.m. the National Association of Realtors will release the month-over-month Pending Home Sales figure, which measures the change in the number of homes under contract to be sold over the past month. However, this figure usually excludes the sale of any newly constructed homes.

As the sale of a home has a wide ranging positive effect in the local economy, binary options traders consider the pending home sales figure to be an important leading indicator of the US economy.

In January, the pending home sales (m/m) in the United States increased by 0.1% and the forecast for February is currently set at an increase of only 0.6%.

Trade Recommendation for the USD/CHF

USDCHFDaily

Since August 2015, the USD/CHF remained in a strong uptrend, which formed a well-respected uptrend line in the process. However, on February 5, the USD/CHF price penetrated below this uptrend line and effectively ended the bullish trend.

A week later, on February 11, the USD/CHF price reached near the 38.2% Fibonacci retracement level of the last upward swing, and found strong support. As a result, the pair formed a bullish pin bar, which practically resumed the uptrend once again.

Last week, the USD/CHF price closed above the important pivot zone near 0.9970, but soon price retraced back below this level.

As the US pending home sales is expected to come out at a 0.6% increase, which is substantially higher compared to last month, the fundamental outlook for the USD/CHF would likely remain bullish this week.

Under such circumstances, it would be recommended that binary options traders consider placing a CALL order for the USD/CHF with their binary options brokers once the price closes above the 0.9970 level once again.

Recommended Broker for US traders: Finpari

Recommended Broker for Non-US Traders: Binary Brokerz

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