Source: PaxForex Premium Analytics Portal, Fundamental Insight
The Swiss Unemployment Rate for March was reported at 3.4%, and the Seasonally Adjusted Unemployment Rate was reported at 3.3%. Economists predicted a rate of 3.6% and 3.6%. Forex traders can compare this to the Swiss Unemployment Rate for February, reported at 3.6%, and the Seasonally Adjusted Unemployment Rate, reported at 3.4%.
The German Trade Balance for February was reported at €19.1B. Economists predicted a figure of €20.0B. Forex traders can compare this to German Trade Balance for January, reported at €21.3B. Exports for February increased by 0.9% monthly, and Imports increased by 3.6% monthly. Economists predicted an increase of 1.0% and 2.4%. Forex traders can compare this to Exports for January, which increased by 1.6% monthly, and to Imports which decreased by 3.5% monthly. The German Current Account Balance for February was reported at €18.8B. Forex traders can compare this to the German Current Account Balance for January, reported at €16.9B.
German Industrial Production for February decreased by 1.6% monthly. Economists predicted an increase of 1.5% monthly. Forex traders can compare this to German Industrial Production for January, which decreased by 2.0% monthly. French Industrial Production for February is predicted to increase by 0.5% monthly. Forex traders can compare this to French Industrial Production for January, which increased by 3.3% monthly. Spanish Industrial Production for February is predicted to decrease by 1.3% annualized. Forex traders can compare this to Spanish Industrial Production for January, which decreased by 2.2% annualized.
The forecast for the EUR/CHF remains bearish as price action is set to resume its correction. A combination of negative Covid-19 data, depleted stimulus, debt, and uneven economic data suggest a flight to safety might follow. The Tenkan-sen and the Kijun-sen started to descend, while the Ichimoku Kinko Hyo Cloud indicates a potential top in this currency pair. After the CCI dropped into extreme oversold territory, trades should expect a volatile spike before selling this currency pair, as more downside is likely. Will bears extend their downside pressure on the EUR/CHF and force it 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 EUR/CHF remain inside the or breakdown below the 1.0975 to 1.1020 zone, the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.1000
- Take Profit Zone: 1.0815 – 1.0845
- Stop Loss Level: 1.1060
Should price action for the EUR/CHF breakout above 1.1020, the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.1060
- Take Profit Zone: 1.1120 – 1.1150
- Stop Loss Level: 1.1020
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