USD/CHF: Trading The US Pending Home Sales

USD/CHF: Trading The US Pending Home Sales

The US Pending Home Sales Report is an important leading economic indicator, considered by analysts as a excellent measure of consumer demand in the housing sector. A higher reading than forecast points to  stronger activity in the housing  industry  and is bullish for the dollar.

 Here are all the details, and 5 possible outcomes for USD/CHF.

 Published on Monday at 14:00 GMT.

Indicator Background

The Pending Homes Sales Report provides analysts and investors with important information about the housing sector. As a house is likely to be the largest purchase that a consumer will make, this indicator gives is important in determining consumer confidence and the health of the economy.

The  reading  climbed up a solid 2% in February.  The markets are expecting a lower increase in March,with a forecast of a 1% increase.

Sentiments and levels

The Swiss economy has been posted some stronger numbers last month, particularly in Industrial Production, which jumped 7.9% last month. However, the markets did not react favorably, and USD/CHF remains choppy.  We  may see  more of this trend  this week. So, the overall sentiment is neutral on USD/CHF towards this release.

Technical levels, from top to bottom: 0.9250, 0.9204, 0.9120, 0.9050, 0.8924,  and 0.8850.


5 Scenarios    

Within expectations: 0.4% to 1.6%: In such a case, the USD/CHF is likely to move within range, with a small chance of breaking higher.

  1. Above expectations: 1.7% to 2.3%: An unexpected reading into positive territory can send USD/CHF  above one resistance line.
  2. Well above expectations: Above 2.3%: A sharp increase in housing sales could push the pair  above two or more  resistance lines.
  3. Below expectations: -0.3% to 0.3%: A reading lower than forecast could send USD/CHF  below one support  level.
  4. Well below expectations: Below -0.3%: A sharp decline would signal  contraction in the housing sector. In such an outcome, the pair could  drop below two  or more  support levels.

For more on the Swiss franc, see the USD/CHF  forecast.


Kenny Fisher

Kenny Fisher

Kenny Fisher - Senior Writer A native of Toronto, Canada, Kenneth worked for seven years in the marketing and trading departments at Bendix, a foreign exchange company in Toronto. Kenneth is also a lawyer, and has extensive experience as an editor and writer.