Source: PaxForex Premium Analytics Portal, Fundamental Insight
The Final German GDP for the second quarter decreased by 9.7% quarterly and 11.3% annualized. Economists predicted a decrease of 10.1% and 11.7% annualized. Forex traders can compare this to the first-quarter German GDP, which decreased 2.0% quarterly and by 1.8% annualized. The Swiss Employment Level for the second quarter was reported at 5.095M. Forex traders can compare this to the Swiss Employment Level for the second quarter, reported at 5.132M.
The German IFO Business Climate Index for August is predicted at 92.2. Forex traders can compare this to the German IFO Business Climate Index for July, reported at 90.5. The German IFO Current Assessment Index for August is predicted at 87.0. Forex traders can compare this to the German IFO Current Assessment Index for July, reported at 84.5. The German IFO Expectations Index for August is predicted at 98.0. Forex traders can compare this to the German IFO Expectations Index for July, reported at 97.0.
The forecast for the EUR/CHF remains bearish with the global economy under continued stress from the Covid-19 pandemic. A growing number of economists refer to the green shoots as brown weeds, as the pent-up post-lockdown demand is deteriorating again while the virus is inflicting harm. Price action remains below its Tenkan-sen and Kijun-sen with a thin Ichimoku Kinko Hyo Cloud flatlining. 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 EUR/CHF remain inside the or breakdown below the 1.0740 to 1.0780 zone the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.0760
- Take Profit Zone: 1.0575 – 1.0610
- Stop Loss Level: 1.0810
Should price action for the EUR/CHF breakout above 1.0780 the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.0810
- Take Profit Zone: 1.0860 – 1.0915
- Stop Loss Level: 1.0780
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