Source: PaxForex Premium Analytics Portal, Fundamental Insight
The Australian AiG Services Index for February came in at 60.0. Forex traders can compare this to the Australian AiG Services Index for January, reported at 56.2. Australian ANZ Job Advertisements for February increased 8.4% monthly. Forex traders can compare this to Australian ANZ Job Advertisements for January, which decreased 0.7% monthly.
The Chinese Trade Balance for February came in at $115.95B. Economists predicted a figure of $99.50B. Forex traders can compare this to the Chinese Trade Balance for January, reported at $94.46B. Exports for February increased 16.3% annualized and Imports by 15.5% annualized. Economists predicted a rise of 15.0% and 16.5%. Forex traders can compare this to Exports for January, which rose 20.9% annualized, and Imports, which expanded 19.5% annualized.
The Swiss Unemployment Rate for February came in at 2.5% and the Seasonally Adjusted Unemployment Rate at 2.2%. Economists predicted a rate of 2.5% and 2.3%. Forex traders can compare this to the Swiss Unemployment Rate for January, reported at 2.6%, and the Seasonally Adjusted Unemployment Rate, reported at 2.3%.
The forecast for the AUD/CHF is turning bearish after its parabolic rise became vulnerable to a massive reversal into its flattening Ichimoku Kinko Hyo Cloud. While the Kijun-sen and the Tenkan-sen advance, suggesting short-term bullishness, traders should monitor the CCI. It moved deep into extreme overbought territory, where a moderate negative divergence appeared. A breakdown below 100 is expected, but traders should remain patient until then, which will deliver a sell signal. Can bears overcome bulls 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 breakdown below the 0.6820 to 0.6890 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 0.6835
- Take Profit Zone: 0.6545 – 0.6600
- Stop Loss Level: 0.6915
Should price action for the AUD/CHF breakout above 0.6890, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 0.6915
- Take Profit Zone: 0.7015 – 0.7095
- Stop Loss Level: 0.6890
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