Source: PaxForex Premium Analytics Portal, Fundamental Insight
The Australian AiG Services Index for December was reported at 56.1. Forex traders can compare this to the Australian AiG Services Index for November, reported at 49.6. Australian TD Securities Inflation for January rose 0.4% monthly. Forex traders can compare this to the Australian TD Securities Inflation for December, which increased 0.2% monthly.
Australian ANZ Job Advertisements for January decreased 0.3% monthly. Forex traders can compare this to Australian ANZ Job Advertisements for December, which decreased 5.8% monthly.
Australian Retail Sales for January contracted 4.4% monthly. Economists predicted a decrease of 4.4% monthly. Forex traders can compare this to Australian Retail Sales for December, which rose 7.3% monthly. Australian Retail Sales excluding Inflation for the fourth quarter increased 8.2% quarterly. Economists predicted an expansion of 8.1% quarterly. Forex traders can compare this to Australian Retail Sales excluding Inflation for the third quarter, which decreased 4.4% quarterly.
The Chinese Caixin Services PMI for January was reported at 51.4 and the Chinese Caixin Composite PMI at 50.1. Forex traders can compare this to the Chinese Caixin Composite PMI for December, reported at 53.1, and the Chinese Caixin Composite PMI at 51.0.
The Swiss Unemployment Rate for January was reported at 2.6%, and the Seasonally Adjusted Unemployment Rate at 2.3%. Economists predicted a rate of 2.7% and 2.4%. Forex traders can compare this to the Swiss Unemployment Rate for December, reported at 2.6%, and the Seasonally Adjusted Unemployment Rate, reported at 2.4%.
The forecast for the AUD/CHF remains bearish, with the descending Ichimoku Kinko Hyo Cloud providing ongoing downside pressure on this currency pair. Forex traders should expect an increase in volatility after the Kijun-sen, and the Tenkan-sen, flatlined, pointing towards a stand-off between bulls and bears. Another indicator to monitor is the CCI after its breakout above -100 and escape from extreme oversold conditions. As it approaches the zero level, traders should look for a momentum loss and reversal before entering their sell positions. Can bears regain the upper hand and force the AUD/CHF into its 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 breakout above the 0.6580 to 0.6630 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 0.6560
- Take Profit Zone: 0.6370 – 0.6410
- Stop Loss Level: 0.6660
Should price action for the AUD/CHF breakout above 0.6615, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 0.6660
- Take Profit Zone: 0.6730 – 0.6810
- Stop Loss Level: 0.6615
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