Source: PaxForex Premium Analytics Portal, Fundamental Insight
German Industrial Production for October increased 2.8% monthly. Economists predicted an increase of 0.8%. Forex traders can compare this to German Industrial Production for September, which decreased 0.5% monthly.
The French Trade Balance for October is predicted at -€6.90B. Forex traders can compare this to the French Trade Balance for September, reported at -€6.78B. The German ZEW Survey Current Situation Index for December is predicted at 5.0, and the German ZEW Survey Economic Sentiment Index at 25.1. Forex traders can compare this to the German ZEW Survey Current Situation Index for November, reported at 12.5, and the German ZEW Survey Economic Sentiment Index reported at 31.7.
The Eurozone Final GDP for the third quarter is predicted to increase 2.2% quarterly and 3.7% annualized. Forex traders can compare this to the Eurozone GDP for the second quarter, which increased 2.1% quarterly and 14.2% annualized. Eurozone Employment for the third quarter is predicted to increase 0.9% quarterly and 2.0% annualized. Forex traders can compare this to Eurozone Employment for the second quarter, which increased 0.7% quarterly and 1.8% annualized.
The Swiss Unemployment Rate for November was reported at 2.5%, and the Seasonally Adjusted Unemployment Rate at 2.5%. Economists predicted a rate of 2.6% and 2.6%. Forex traders can compare this to the Swiss Unemployment Rate for October, reported at 2.5%, and the Seasonally Adjusted Unemployment Rate, reported at 2.7%.
The forecast for the EUR/CHF remains bearish as the underlying fundamental weakness is likely to extend the sell-off. Short-term volatility could increase after the Kijun-sen turned sideways, while the Tenkan-sen extends its downward drift. The Ichimoku Kinko Hyo Cloud maintains the overall bearish chart pattern as it continues to move lower. After the CCI broke out from extreme oversold territory, traders should monitor for a reversal. Can bears regain control of this currency pair and force the EUR/CHF 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 1.0415 to 1.0490 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.0445
- Take Profit Zone: 1.0170 – 1.0235
- Stop Loss Level: 1.0535
Should price action for the EUR/CHF breakout above 1.0490, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.0535
- Take Profit Zone: 1.0655 – 1.0690
- Stop Loss Level: 1.0490
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