Fundamental Analysis of USD/CHF for September 1, 2017

USD/CHF has been residing inside a range of 0.9440 to 0.9770 where it has been correcting and volatile for a while now. CHF had been quite dominant over USD which recently is fading away due to positive USD economic reports are published. Today is a very important day for USD as a number of high impacts economic reports are going to be published. Today USD Average Hourly Earnings report is going to be published which is expected to decrease to 0.2% from the previous value of 0.3%, Non-Farm Employment Change report is also expected to decrease to 180k from 209k, Unemployment Rate is expected to be unchanged at 4.3% and ISM Manufacturing PMI report is expected to have slight increase to 56.5 from the previous figure of 56.3. Though all the forecasts of USD economic reports today are quite downward but any better than the expected result will lead to further gain on the USD side for the coming days. On the CHF side, today Manufacturing PMI report is going to be published which is expected to decrease to 60.4 from 60.9 and Retail Sales report is expected to increase to 1.7% from the previous value of 1.5%. To sum up, today is the day for USD where high impact events are going to be published whereas CHF economic reports are expected to have minimal impact on the market. If the USD reports come positive then USD is expected to gain further against CHF breaking the range upwards.

Now let us look at the technical view, the price is currently bouncing between the range of 0.9440 to 0.9770 area. Inside the range, a positive divergence is found which shows a probability of bullish move inside the range with a breakout formation. Currently, as of divergence, we will be looking forward to buying but with a daily bullish close to signal the authenticity of the positive divergence setup. As the price remains above the 0.9440 the bullish bias is expected to continue.

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