Source: PaxForex Premium Analytics Portal, Fundamental Insight

German Retail Sales for October increased by 2.6% monthly and by 8.2% annualized. Economists predicted an increase of 1.2% monthly and 5.9% annualized. Forex traders can compare this to German Retail Sales for September, which decreased by 1.9% monthly, and which increased by 7.0% annualized.

The Italian Unemployment Rate for October is predicted at 9.9%. Forex traders can compare this to the Italian Unemployment Rate for September, reported at 9.6%. The Eurozone PPI for October is predicted to increase by 0.2% monthly and to decrease by 2.4% annualized. Forex traders can compare this to the Eurozone PPI for September, which increased by 0.3% monthly and which decreased by 2.4% annualized.

The Eurozone Unemployment Rate for October is predicted at 8.4%. Forex traders can compare this to the Eurozone Unemployment Rate for September, reported at 8.3%. The Swiss CPI for November decreased by 0.2% monthly and by 0.7% annualized. Economists predicted a decrease of 0.1% and 0.5% annualized. Forex traders can compare this to the Swiss CPI for October, which was reported flat at 0.0% monthly, and which decreased by 0.6% annualized.

The forecast for the EUR/CHF turned bearish after price action moved above its Ichimoku Kinko Hyo Cloud, while the Kijun-sen and Tenkan-sen started to flatten out. The CCI trades in extreme overbought territory but started to retreat from its high, creating a negative divergence. Global economic uncertainty related to the Covid-19 pandemic and debt remains, favoring a stronger Swiss Franc. Will bears force the EUR/CHF into a correction? 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 1.0830 to 1.0870 zone the following trade set-up is recommended:

• Timeframe: D1
• Recommendation: Short Position
• Entry Level: Short Position @ 1.0850
• Take Profit Zone: 1.0660 – 1.0685
• Stop Loss Level: 1.0900

Should price action for the EUR/CHF breakout above 1.0870 the following trade set-up is recommended:

• Timeframe: D1
• Recommendation: Long Position
• Entry Level: Long Position @ 1.0900
• Take Profit Zone: 1.0960 – 1.1000
• Stop Loss Level: 1.0870

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