Source: PaxForex Premium Analytics Portal, Fundamental Insight
German Factory Orders for April are predicted to increase 1.0% monthly. Forex traders can compare this to German Factory Orders for March, which increased 3.0% monthly. Spanish Industrial Production for April is predicted to increase by 12.6% annualized. Forex traders can compare this to Spanish Industrial Production for March, which increased 12.4% annualized. Eurozone Sentix Investor Confidence for June is predicted at 26.0. Forex traders can compare this to Eurozone Sentix Investor Confidence for May, reported at 21.0.
The Swiss CPI for May is predicted to increase 0.3% monthly and 0.6% annualized. Forex traders can compare this to the Swiss CPI for April, which increased 0.2% monthly and 0.3% annualized.
The forecast for the EUR/CHF remains bearish with rising inflation and a weaker-than-expected global economy combining for a turbulent summer. Interest rates may rise sooner than communicated by many central banks, adding to the debt problem. While the Ichimoku Kinko Hyo Cloud entered a sideways trend, the Tenkan-sen and the Kijun-sen resume their descend. The CCI reached extreme oversold territory but has plenty of downside potential. Can bulls extend the sell-off in the EUR/CHF and force it 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 1.0920 to 1.0960 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.0935
- Take Profit Zone: 1.0815 – 1.0845
- Stop Loss Level: 1.0990
Should price action for the EUR/CHF breakout above 1.0960, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.0990
- Take Profit Zone: 1.1045 – 1.1075
- Stop Loss Level: 1.0960
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