USD/CHF Tests Support Near 0.9985 Level Amid Forecast of Tentative Fundamentals

USD/CHF – Technical Analysis for Forex Trading Brokers.

Switzerland – Producer Price Index (PPI)

Today, 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.

Forex trading brokers 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 this month is that it would remain unchanged for the time being.

United States – Building Permits

On Tuesday, at GMT 1:30 p.m., the US Census Bureau will release the Building Permits figure, which is an annualized number of new building permits for the residential housing sector issued during the last month.

Since getting a building permit usually indicate future construction work, and construction work usually increases the demand for products and services in the local area, Forex investors consider this data to be a leading indicator of the overall economic activity in the country.

Last month, 1.27 million building permits were issued and this month, analysts are expecting the figure to come out around 1.27 million as well.

USD/CHF Forecast

AUDCHF Analysis for forex trading brokers

Since breaking below the uptrend line on March 15, 2017, the USD/CHF mostly remained range bound and traded within the range between 0.9820 and 1.0100 levels. Last week, the USD/CHF price was once again rejected around the 1.0100 level. Currently, the USD/CHF is trading just above the support around 0.9985 level.

As the Swiss PPI is expected to come out at 0.0% and the US building permits figure is expected to remain unchanged at 1.27 million, we believe the fundamental outlook for the USD/CHF would likely remain tentative. However, given the sharp decline in price last week, if the USD/CHF penetrates below the support around 0.9985 level, it would likely attract additional bearish momentum in the market.

As result, if the support around 0.9985 breaks, there would be a good chance that the USD/CHF will decline further towards the support around 0.9820.

Hence, Australian Forex traders should look out for trading opportunities below this major support level around 0.9985 level.

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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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