AUD/CHF Eyes Key Resistance as Inflation in Australia Set to Grow

AUDCHF – Technical Analysis for Go Markets

Switzerland – KOF Economic Barometer

On Monday, at GMT 8:00 a.m., the KOF Economic Research Agency released its economic barometer index. It measures the changes in the level of a composite index.

The KOF develops this composite index by analyzing 219 different economic indicators. Hence, Go Markets investors consider this to be an important fundamental indicator regarding the Swiss economy.

Last month, the KOF economic barometer index reading came out at 102.2. However, the forecast for this month is currently set at a slightly lower reading, at 100.8.

Australia – Consumer Price Index

On Wednesday, at GMT 12:30 a.m., the Australian Bureau of Statistics will release the quarter-over-quarter consumer price index (CPI) figure. It measures the changes in the price of goods and services bought by Australian consumers in the last quarter.

The consumer price index is primarily used by the Australian central bank to measure inflation. Any significant change in the CPI often makes the Forex market extremely volatile. Also, the inflation at the retail level has a big influence on the central bank’s future monetary policy. Hence, it is considered by binary options traders to be a leading indicator of the Australian economy.

Last quarter, the Australian consumer price index decreased by 0.4%. The forecast for this quarter is set at an increase of 0.5%.

AUD/CHF Forecast

AUDCHF Analysis for Go Markets platform - 29th October 2018

Since forming a small bearish pin bar on June 6, 2018, the AUD/CHF remained on a strong downtrend. Over the last several months, the AUD/CHF fell by around 700 pips. However, after reaching near the 0.6875 level, it found a strong support and started a bullish retracement towards the downtrend line.

Since the middle of September, the AUD/CHF mostly remained range bound. So far, it the resistance near the 0.7115 has kept the pair from moving further up. Last week, the AUD/CHF once again tested the uptrend line and currently approaching the 0.7115 level once again.

The Swiss KOF economic barometer reading is expected to come out slightly lower than last month at 100.8. On the other hand, analysts are expecting the Australian consumer price index to expand and reach 0.5% over the last month.  We believe it would set a bullish fundamental outlook for the AUD/CHF this week. Therefore, if the AUD/CHF closes above the resistance near 0.7115, it would likely attract additional bullish momentum in the market.

Hence, Australian binary options traders should look out for trading opportunities above this major resistance level around 0.7115.

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