Source: PaxForex Premium Analytics Portal, Fundamental Insight
The Spanish Unemployment Change for December is predicted at -40.3K. Forex traders can compare this to the Spanish Unemployment Change for November, reported at -33.5K.
The Spanish Manufacturing PMI for December is predicted at 46.2. Forex traders can compare this to the Spanish S&P Global Manufacturing PMI for November, reported at 45.7.
The Italian Manufacturing PMI for December is predicted at 48.5. Forex traders can compare this to the Italian S&P Global/ADACI Manufacturing PMI for November, reported at 48.4.
The Final French Manufacturing PMI for December is predicted at 48.9. Forex traders can compare this to the French Manufacturing PMI for November, reported at 48.3.
The Final German Manufacturing PMI for December is predicted at 47.4. Forex traders can compare this to the German Manufacturing PMI for November, reported at 46.2.
The Final Eurozone Manufacturing PMI for December is predicted at 47.8. Forex traders can compare this to the Eurozone Manufacturing PMI for November, reported at 47.1.
The Swiss Procure.ch PMI for December is predicted at 53.3. Forex traders can compare this to the Swiss Procure.ch PMI for November, reported at 53.9.
With many traders absent today in observance of New Year’s Day, the first trading session of 2023 will feature low volumes. On the economic front, PMI data from the Eurozone and Switzerland will dominate the calendar, offering a solid start to the trading year. Inflation and central banks will remain in focus, especially in the first quarter. The Bank of Israel is likely to continue the interest rate increases with a rise from 3.25% to 3.75%, with all major central banks, except the Bank of Japan, anticipated to tighten monetary policy during their first meeting of 2023. The safe-haven appeal of the Swiss Franc could provide a bullish catalyst throughout the year.
The forecast for the EUR/CHF remains bearish after this currency pair failed to push through its horizontal resistance area, located below parity, which is the next significant resistance level. Bulls and bears will fight for control, and volatility could rise after the Kijun-sen, and the Tenkan-sen, flatlined. The Ichimoku Kinko Hyo Cloud confirms the likelihood of volatile trading as the Senkou Span B is flat, but the Senkou Span A drifts higher. Traders should monitor the CCI following its breakdown from extreme overbought territory, followed by a bounce near extreme oversold conditions. This technical indicator moved above zero but is vulnerable to a reversal, which could trigger more selling. Can bears overcome bulls and force the EUR/CHF 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 0.9855 to 0.9915 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 0.9885
- Take Profit Zone: 0.9690 – 0.9730
- Stop Loss Level: 0.9955
Should price action for the EUR/CHF breakout above 0.9915, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 0.9955
- Take Profit Zone: 1.0000 – 1.0045
- Stop Loss Level: 0.9915
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