USD/CHF Likely to Test Resistance Near 1.0065 Despite Improving Swiss Manufacturing

USD/CHF – Technical Analysis and Forecast for Australian Forex Trading.

Switzerland – Manufacturing PMI

Today, at GMT 8:30 a.m., Procure released the Swiss manufacturing PMI, which measures the level of a diffusion index by surveying 200 purchasing managers in the country.

Since businesses react quickly to changing market circumstances, their purchasing managers tend to have the most updated information about their company’s view regarding the economy. Hence, Australian Forex traders pay special attention to Swiss manufacturing PMI data in order to understand the market sentiment.

Last month, the Swiss manufacturing PMI reading came out at 57.8 and the forecast for April was set at 58.2. However, the actual index reading came out much better than expected, at 58.2.

United States – ISM Non-Manufacturing PMI

On Wednesday, at GMT 3:00 p.m., the US based Institute for Supply Management (ISM) will release its monthly Non-Manufacturing PMI figure, which measures the level of a diffusion index created by surveying purchasing managers. However, the ISM’s PMI figure excludes the non-manufacturing sector.

Forex investors consider the ISM Non-Manufacturing PMI figure to be a leading economic indicator because purchasing managers have the most updated view of the economy.

Last month, the ISM’s Non-Manufacturing PMI figure came out at 57.6 and the forecast for this month is currently set at a slightly lower figure, at 57.1.

USD/CHF Forecast

USD/CHF weekly forecast for Australian Forex

After breaking below the uptrend line on March 15, 2017, the USD/CHF price declined by around 220 pips over the last two weeks. However, as soon as the USD/CHF reached near the support around 0.9820 level, it started a sharp bullish retracement, which has so far pushed the price towards 1.0065 level.

As the Swiss manufacturing PMI has come out slightly better than what the market was expecting, it would likely slow down the bullish momentum. However, the impact should be minimum was the PMI figure came out within a narrow margin of the analysts’ consensus forecast.

Therefore, if the current bullishness continues, the USD/CHF should move further up and test the resistance near the 1.0065 level within the next few days, and Australian Forex traders should plan trading strategy accordingly.

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Asif worked as a prop trader for almost a decade, and later he managed trading operations for one of the largest foreign exchange strategy developers in Europe. Currently, he works as a trading consultant to several brokers and writes about various tech and financial topics. You can reach him at contact@asifimtiaz.com

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Asif Imtiaz

Asif worked as a prop trader for almost a decade, and later he managed trading operations for one of the largest foreign exchange strategy developers in Europe. Currently, he works as a trading consultant to several brokers and writes about various tech and financial topics. You can reach him at contact@asifimtiaz.com

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