AUDCHF – Binary Options Technical Analysis
Switzerland – Producer Price Index (PPI)
On Monday, 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) increased by 0.1% and the forecast for August is set at a decrease of 0.2%.
Australia – Unemployment Rate
On Thursday, at GMT 2:30 a.m., the Australian Bureau of Statistics will release the national unemployment rate, which measures the percentage of total work force which remained unemployed over the past month.
Binary options investors consider the unemployment rate to be one of the most important fundamental indicators of the Australian economy because one of the main goals of the Reserve Bank of Australia is to keep the unemployment as low as possible. Although this is a lagging indicator, analyzing this data can help predict future interest rates and inflation situation in the country.
Last month, the unemployment rate in Australia came out at 5.8% and the forecast for this month is that the unemployment will remain unchanged for the time being.
Trade Recommendation for the AUDCHF
Since the formation of a bullish pin bar on August 2, the AUD/CHF price has climbed around 200 pips over the last week and found resistance at the 0.7550 level. After reaching the important psychological pivot zone near the 0.7550 level, the AUD/CHF managed to penetrate it, but failed to close above this level.
As a result, it formed a bearish pin bar on August 10 and started a retracement move that pushed the price below the intermediate pivot zone around the 0.7490 level.
As the Australian unemployment rate is expected to remain unchanged at 5.8% over the last month and the Swiss PPI figure is expected to decrease by 0.2%, the fundamental outlook for the AUDCHF would likely remain bullish this week. If the AUDCHF price closes above the 0.7490 level, it would likely attract additional bullish momentum and try to test the 0.7550 level once again by the end of the week.
Under the circumstances, it would be recommended that binary options traders consider placing a CALL order for the AUD/CHF with their binary options brokers as soon as the price and closes above the 0.7490 level on the daily chart.
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