USD/CHF Price Found Adequate Support Around Key Fibonacci Level

Switzerland – Manufacturing PMI

Today, at GMT 8:30 a.m., Procure released the Swiss manufacturing PMI, which measures the level of a diffusion index by surveying 200 purchasing managers in the country.

Since businesses react quickly to changing market circumstances, their purchasing managers tend to have the most updated information about their company’s view regarding the economy. Hence, binary options traders pay special attention to Swiss manufacturing PMI data in order to understand the market sentiment.

In December 2015, the Swiss manufacturing PMI reading came out at 49.7 and the forecast for January was set at 50.2. However, the actual index reading came out much better than expected, at 52.1.

United States – Institute for Supply Management (ISM) Manufacturing PMI

Today, at GMT 3:00 p.m., the Institute for Supply Management released its manufacturing PMI figure for the United States. The ISM’s US manufacturing PMI measures the level of a diffusion index based on a survey of 400 purchasing managers.

Purchasing managers in the United States are involved in the supply side of the economy. As most companies reduce their expenses and production based on their sales forecast, the survey of purchasing managers reveals the overall optimism of various companies in the country. Hence, binary options investors can easily figure out the sentiment regarding the economic condition in the country from the ISM manufacturing PMI readings.

Last month, the ISM manufacturing PMI for the United States came out at 48.6 and the forecast for this month is currently set at 49.1.

Trade Recommendation for the USD/CHFUSDCHFDaily

Since August 24, the USD/CHF has remained in a steady uptrend and formed a well-defined upward sloping equidistant channel in the process. After reaching as high as 1.0325 on November 27, the USD/CHF started a retracement move, which pushed the price towards the 50% Fibonacci retracement level in early December.

Over the past few weeks, the USD/CHF price has remained mostly range bound. But, but on last Friday, it penetrated above the minor range.

Today, the USD/CHF price opened above the resistance around 0.9990, but so far remained bearish. However, the 61.8% Fibonacci retracement level of the last bullish move provided ample support to the price, which is situated around the 0.9920 level.

Since the 0.9920 level seems to be acting as a good support for the USD/CHF, it would be recommended that binary options traders consider placing a CALL order for the USD/CHF with their binary options brokers at the current market price.

Recommended Broker: Porter Finance

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