EUR/USD Failed to Break Above Resistance Near 1.1900 Amid Forecast of Falling US Unemployment Claims
EUR/USD Weekly Outlook: 10th November 2020 Eurozone – German ZEW Economic Sentiment On Tuesday, at…
On Thursday, at GMT 7:00 a.m., the KOF Economic Research Agency will release 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, CFD traders consider this to be an important fundamental indicator regarding the Swiss economy.
Last month, the KOF economic barometer index reading came out at 113.5. The forecast for this month is set at a slightly lower reading of 110.3.
On Friday, at GMT 2:00 p.m., the Institute for Supply Management will release its manufacturing PMI figure for the United States. ISM’s US manufacturing PMI measures the level of a diffusion index based on a survey of 400 purchasing managers.
Purchasing managers in the United States usually affect the supply side of the economy. As most companies reduce their expenses and production based on their sales forecast, the survey of purchasing managers reveals the overall optimism of various companies in the country. Hence, Forex traders can easily figure out the sentiment regarding the economic condition in the country from the ISM manufacturing PMI readings.
Last month, the ISM manufacturing PMI for the United States came out at 59.9. The forecast for this month is currently set at 59.6.
At the end of May 2021, the USD/CHF fell near the support around 0.8930 level. Since then, the pair has formed an ascending triangle. On September 17, the USD/CHF broke above this ascending triangle, then retraced back to the 0.9215 level. Yesterday, it once again broke above the resistance around 0.9275. Currently, it is slowly approaching toward the next resistance near the 0.9375 level.
The US ISM manufacturing PMI will likely come down from 59.9 to 59.6. On the other hand, analysts are expecting the Swiss KOF economic barometer index reading to come down from 113 to a slightly lower reading of 110.3. While both fundamental indicators are bearish, the Swiss data shows a higher degree of bearishness. We believe it would set a bullish fundamental outlook for the USD/CHF this week. Therefore, the USD/CHF would likely remain bullish till reaching the next resistance near the 0.9215 level.
Hence, CFD traders should look out for trading opportunities as long as the price remains below the resistance level of around 0.9215.
Market Analyst / Trading Consultant . 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 email@example.com
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