AUD/CHF Eyes Key Resistance Despite Bearish Forecast of Declining Home Loans in Australia

AUD/CHF – Technical Analysis for Binary Options Australia

Australia – Home Loans

On Tuesday, at GMT 1:30 a.m., the Australian Bureau of Statistics will release the month-over-month home loans figure. It measures the changes in the number of new loans approved for owner-occupied homes.

Most home purchases are financed by banks and the new home loan figure acts as an excellent gauge of how many qualified buyers are ready to take out home loans. Therefore, economists and Go Markets traders consider the changes in the new home loan figure to be a leading indicator of the overall economic situation in the country.

Last month, the Australian new home loans decreased by -2.6%. Analysts are expecting it to decrease by an additional -3.0% this month.

Switzerland – Unemployment Rate

On Tuesday, at GMT 5:45 a.m., the Swiss SECO will release the national unemployment rate. It 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 Swiss economy. It is because one of the main goals of the Central Bank of Switzerland is to keep the unemployment as low as possible. Although this is a lagging indicator, analyzing this data can help Forex traders predict future interest rates and inflation situation in the country.

Last month, the unemployment rate in Switzerland came out at 2.4%. This month, analysts are expecting it to remain unchanged at 2.4%.

AUD/CHF Forecast

AUD/CHF Daily Chart - April 9 2019

Since February 5, the AUD/CHF formed a downward sloping equidistant channel. On March 25, the AUD/CHF tested the lower end of this equidistant channel and found a strong support near the 0.7025 level. Over the last two weeks, the pair has started a bullish retracement. Currently, it is about to test the major psychological resistance near the 0.7125 level.

The Swiss unemployment rate is likely to remain unchanged at 2.4% over the last month. On the other hand, analysts are expecting the Australian home loan to decrease by -3.0%. The fundamental aspects of the AUD/CHF appear to be bearish. However, if we see a clear break above the 0.7125 level, it may turn out to be a significant technical event as the equidistant channel will be broken. Therefore, if the AUD/CHF closes above the resistance near 0.7125, it would likely attract additional bullish momentum in the market.

Hence, binary options Australia traders should look out for trading opportunities above this major resistance level around 0.7315.

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John Walker

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