USD/CHF Uptrend Likely to Continue Amid Forecast of Improving Housing Market in the US

Switzerland – Trade Balance

Tomorrow, at GMT 7:00 a.m., the Swiss Federal Statistical Office released the monthly trade balance figure, which measures the difference in value between net import and export of goods over the past month.

Since the demand for export is directly correlated with the demand for the Swiss Franc, binary options traders analyze the monthly trade balance in order to gauge the strength of the CHF against other major currencies.

Last month, the Swiss trade balance figure came out at 2.16 billion and the forecast for this month is currently set at a much higher figure compared to April, at 3.14 billion.

United States – New Home Sales

Later, GMT 3:00 p.m., the United States Census Bureau will release the New Home Sales figure that measures the annualized number of new family homes sold during the last month.

Since the sale of a new home usually cause an increase in a wide ranging economic activity, such as sales of new furniture, new mortgage for the home, etc.; binary options investors always considered the New Home Sales figure to be a leading fundamental indicator of the US economy.

Last month, on a year-over-year basis, total 511,000 new homes were sold in the United States, and this month, the forecast is set even higher, at 521,000.

Trade Recommendation for the USD/CHF

USDCHFDaily

After declining around 830 pips since December 2015, the USD/CHF finally found a strong support around the 0.9500 level. The USD/CHF failed to penetrate the 0.9500 level in the first try on April 12 but successfully penetrated the support in the second try on May 3.

However, a lack of subsequent bearish momentum in the market pushed the pair higher the same day and the USD/CHF formed a large bullish pin bar off the 0.9500 level. As a result, the USD/CHF has been on a bullish retracement over the last two weeks.

As the forecast for this month’s US new home sales is expected to come out this week slightly better compared to last month, the fundamental mental outlook for the USD/CHF would likely remain bullish. Hence, once the USD/CHF price breaks and closes above last week’s high, it would likely continue to climb upwards this week.

Under the 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 0.9920 level.

Recommended Broker for US traders: Finpari

Tagged with:

Leave a Comment

All content, design, and layout are Copyright © 2013 - 2016. All Rights Reserved. USBinaryOptions.com is owned and operated by AD Entertainment, a company registered in England / Wales ( United Kingdom ).
About Us - Sitemap - Contact Us - Disclaimer- Terms & Conditions