Source: PaxForex Premium Analytics Portal, Fundamental Insight
The Australian Employment Change for May was reported at -227.7K. Economists predicted a figure of -125.0K. Forex traders can compare this to the Australian Employment Change for April, which was reported at -594.3K. The Unemployment Rate for May was reported at 7.1%. Economists predicted a reading of 7.0%. Forex traders can compare this to the Unemployment Rate for April, which was reported at 6.2%. 89.1K Full-Time Positions were lost in May. Forex traders can compare this to the loss of 220.5K Full-Time Positions, which were reported in April. The Labor Force Participation Rate for May was reported at 62.9%. Economists predicted a reading of 63.7%. Forex traders can compare this to the Labor Force Participation Rate for March, which was reported at 63.5%.
The Swiss Trade Balance for May was reported at CHF2.801B. Forex traders can compare this to the Swiss Trade Balance for April, which was reported at CHF3.990B. The Swiss National Bank Sight Deposit Interest Rate was reported at -0.75%. Economists predicted a reading of -0.75%. Forex traders can compare this to the previous Swiss National Bank Sight Deposit Interest Rate, which was reported at -0.75%.
The AUD/CHF outlook turned bearish after this morning’s disappointing employment report out of Australia. Job losses were almost twice expectations, and the unemployment rate rose as the participation rate decreased in May. Price action is trapped between its Kijun-sen and its Tenkan-sen. A sell-off is expected to drop this currency pair into its horizontal support area, which is crossing the Ichimoku Kinko Hyo Cloud. Do bears have enough power to force a correction? 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 0.6485 to 0.6580 zone the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 0.6520
- Take Profit Zone: 0.5975 – 0.6080
- Stop Loss Level: 0.6620
Should price action for the AUD/CHF breakout above 0.6580 the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 0.6620
- Take Profit Zone: 0.6710 – 0.6735
- Stop Loss Level: 0.6580
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