Source: PaxForex Premium Analytics Portal, Fundamental Insight
The Australian House Price Index for the third quarter increased by 0.8% quarterly and by 4.5% annualized. Forex traders can compare this to the Australian House Price Index for the second quarter, which decreased by 1.8% quarterly, and which increased by 6.2% annualized. Australian NAB Business Conditions for November were reported at 9, and Australian NAB Business Confidence at 12. Forex traders can compare this to NAB Business Conditions for October, reported at 1, and to Australian NAB Business Confidence, reported at 5.
The Swiss Unemployment Rate for November was reported at 3.3%, and the Seasonally Adjusted Unemployment Rate was reported at 3.4%. Economists predicted a rate of 3.3% and 3.4%. Forex traders can compare this to the Swiss Unemployment Rate for October, reported at 3.2%, and the Seasonally Adjusted Unemployment Rate, reported at 3.4%.
The forecast for the AUD/CHF remains bearish. Relations between Australia and China remain soured, with no immediate signs of improvement. The global Covid-19 situation threatens global output and positions 2021 for a weak start, adding to safe-haven demand for the Swiss Franc. Price action is located between its ascending Kijun-sen and its descending Tenkan-sen but above its ascending Ichimoku Kinko Hyo Cloud. With the CCI in extreme oversold territory and more downside potential, the AUD/CHF can add to its sell-off. Will bears pressure this currency pair into its next horizontal support area? Subscribe to the PaxForex Daily Fundamental Analysis and earn over 5,000 pips per month.
Should price action for the AUD/CHF remain inside the or breakdown below the 0.6585 to 0.6640 zone the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 0.6600
- Take Profit Zone: 0.6370 – 0.6410
- Stop Loss Level: 0.6675
Should price action for the AUD/CHF breakout above 0.6640 the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 0.6675
- Take Profit Zone: 0.6710 – 0.6740
- Stop Loss Level: 0.6640
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