USDCHF Price Action Suggests Additional Bullishness

USDCHF – Binary Options Technical Analysis.

Switzerland – Producer Price Index (PPI)

Tomorrow, at GMT 8:15 a.m., the Swiss Federal Statistical Office will release the month-over-month Producer Price Index (PPI), which measures the changes in the price of goods and raw materials bought by Swiss manufacturers during the previous month.

Binary options traders consider the Swiss Producer Price Index (PPI) to be a leading indicator of the consumer inflation because any substantial increase in the raw materials is passed on to the buyers of the finished products by manufacturers. Hence, an increase in PPI indicates rising prices at the consumer level, which contributes to overall national inflation.

Last month, the Swiss PPI (m/m) decreased by -0.1% and the forecast for September is set at an additional decrease of -0.2%.

United States – Retail Sales

On Thursday, at GMT 1:30 p.m., the US Census Bureau will release the national month-over-month retail sales figure, which measures the changes in the total value of all sales made at the retail level in the country over the past month.

Retail sales data are considered by binary options investors to be the primary gauge of consumer spending and confidence. This is because when consumers are confident about their future financial situation, they tend to spend more.

In August, the US retail sales value remained unchanged at 0.0% and the forecast for this is set at a slightly a decrease in value, at -0.1%

Trade Recommendation for the USDCHF

USDCHF - Binary Options analysis

Over the last few months, the USDCHF has mostly remained range bound between 0.9500 and 1.0000 levels. Last week, the USDCHF fell to the intermediate support level around 0.9650, then produced a Bullish Outside Bar (BUOB), which pushed the price towards the resistance near 0.9765 level.

As the US retail sales is expected to decline, it could have a bearish effect on the USDCHF price. But, since the Swiss PPI is also expected to decline and the market is in a strong uptrend, there is a good possibility that the bullish momentum would prevail for the next few days. Especially, if the USDCHF price successfully penetrates above the 0.9765 level, it would likely attract additional bullish momentum in the market.

Under the circumstances, it would be recommended that US binary options traders consider placing a CALL order for the USD/CHF with their binary options brokers as soon as the price penetrates and closes above the 0.9765 level on the daily timeframe.

Top Binary Brokers to trade USDCHF

Top US Broker: BinaryMate

US Regulated Broker: NADEX

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