USD/CHF is showing hesitation but may turn to the downside if the key support level is broken

CHFUSD – Technical analysis of forex and binary options

Switzerland - foreign exchange reserves

Later, at 08:00 am GMT, the Swiss National Bank released its foreign currency reserve number, which measures the total value of foreign currency reserves held by the central bank.

Currency reserves usually fall when the Swiss National Bank tries to defend the price of the Swiss franc in the open market, when the demand for the Swiss franc is low. Therefore, this number indicates the extent of the activity of the central bank and its participation in the market. Hence, binary options investors consider this as an important fundamental indicator for the future movement and direction of the Swiss Franc against other major currencies.

Last month, the Swiss foreign exchange reserve figure came to $630 billion, compared to $628 billion the previous month, which means that the SNB is seeking to maintain its currency reserves rather than reduce or increase them.

United States - Unemployment Claims Rate

On Thursday, at 01:30 PM GMT, the US Labor Department released the unemployment claims number, which measures changes in the number of people who have claimed unemployment insurance over the past week.

Binary options traders look at jobless claims data to be one of the most important fundamental indicators of the US labor market. This is primarily because unemployment is directly related to consumer spending. The increasing number of unemployment claims indicates a decline in consumer spending in the economy, which constitutes the bulk of economic activity in the United States.

Over the past few weeks, the number of jobless claims in the United States has been between 246,000 and 260,000. Last week, the figure came in at 265,000 and this week, expectations are set for a slight increase at 267,000.

Trading recommendations for the US dollar currency pair  / Swiss franc

CHFUSD - Technical Analysis of Forex and Binary Options

On October 25th, the USD/CHF currency pair formed  A bearish pin formed and within the next few days, it collapsed below two of the uptrend lines. By last week, the pair fell about 250 pips, and found support near the 38.2% Fibonacci retracement level of the last major swing, which was at 0.9666.

although  currency pair price  USD/CHF closed below the rising trend line, the next day, the market reversed, closing above the trend line again. However, today, the USD/CHF price rebounded from the resistance around 0.9800 and appeared hesitant about the direction. The lack of directional movement can be explained by the fact that both the Swiss FX Reserve and the US unemployment claims numbers are likely to remain unchanged to Somewhat compared to the last reporting periods.

Since there are no major changes in market fundamentals, if the price of the US dollar / Swiss franc is  Below the current support level around 0.9725, it is likely to attract additional bearish momentum which could push prices lower further.

Under these circumstances, it is advisable for binary options traders to consider setting up a sell order for USD/CHF with brokers. Binary options As soon as the price closes below the level of 0.9725 on the daily time frame.

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Ahmed A.
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