USDCHF Still Very Positive As Bullish Pin Bar Emerges Amid Upbeat US Data
Jul, 28th 03:54
The US Dollar (USD) extended upside movement against the Swiss Franc (CHF) on Tuesday, increasing the price of USDCHF to more than 0.9600 following the release of US Durable Goods report. The technical bias remains bullish due to a Higher High and Higher Low in the ongoing wave on daily chart.
As of this writing, the pair is being traded around 0.9617. A support may be noted around 0.9529, the low of the yesterday’s bullish pin bar and channel support as demonstrated in the following daily chart. A break and daily closing below the channel support could incite renewed selling pressure, validating a dip towards the 0.9150 support area.
On the upside, the pair is expected to face a hurdle near 0.9632, the intra-day high of yesterday ahead of 0.9710, the channel resistance and then 0.9862, the high of last major upside rally. The technical bias will remain bullish as long as the 0.9150 support area is intact.
Upbeat Durable Goods Orders
The number of durable goods orders received by the US manufacturers jumped by 3.4% in June as compared to -2.1% in the month before, thus up beating the median projection of 3.0%. Generally speaking, higher durable goods orders are considered positive for the economy and vice versa so the upbeat figure spurred bullish momentum in the price of USDCHF which is likely to continue in short term.
Binary Options Trade Idea
Considering the huge bullish pin bar which emerged yesterday around the channel support, buying the call options of USDCHF appears to be a good strategy in short to medium term.