Source: PaxForex Premium Analytics Portal, Fundamental Insight
German Industrial Production for December is predicted to increase by 0.3% monthly. Forex traders can compare this to German Industrial Production for November, which increased by 0.9% monthly. Eurozone Sentix Investor Confidence for February is predicted at 1.9. Forex traders can compare this to Eurozone Sentix Investor Confidence for January, reported at 1.3.
The Swiss Unemployment Rate for January is predicted at 3.4%, and the Seasonally Adjusted Unemployment Rate was reported at 3.5%. Forex traders can compare this to the Swiss Unemployment Rate for December, reported at 3.5%, and the Seasonally Adjusted Unemployment Rate, reported at 3.4%.
The forecast for the EUR/CHF remains bearish as the EU continues to struggle with the latest mutation of Covid-19. While investors ignore negative economic data, especially out of Germany, the growth engine of the EU, it suggests more issues ahead. It favors the safe-haven Swiss Franc. Price action moved into the Senkou Span A of its Ichimoku Kinko Hyo Cloud, while the Kijun-sen and Tenkan-sen point towards a few choppy trading sessions. The CCI is on the verge of moving out of extreme overbought territory, likely to deliver a breakdown catalyst. Will bears overpower pulls and force the EUR/CHF into a retreat 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 1.0800 to 1.0860 zone the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.0830
- Take Profit Zone: 1.0660 – 1.0685
- Stop Loss Level: 1.0890
Should price action for the EUR/CHF breakout above 1.0860 the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.0890
- Take Profit Zone: 1.0960 – 1.1000
- Stop Loss Level: 1.0860
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