Source: PaxForex Premium Analytics Portal, Fundamental Insight
The German Import Price Index for April is predicted to increase 2.0% monthly and 32.0% annualized. Forex traders can compare this to German Import Price Index for March, which rose 5.7% monthly and 31.2% annualized.
The Swiss KOF Leading Indicator for May is predicted at 102.3. Forex traders can compare this to the Swiss KOF Leading Indicator for April, reported at 101.7.
The Preliminary Spanish Harmonized CPI for May is predicted to rise 0.8% monthly and 8.2% annualized. Forex traders can compare this to the Spanish Harmonized CPI for April, which decreased 0.3% monthly and increased 8.1% annualized.
Eurozone Economic Sentiment for May is predicted at 104.9. Forex traders can compare this to Eurozone Economic Sentiment for April, reported at 105.0. Eurozone Industrial Sentiment for May is predicted at 7.5, and Eurozone Services Sentiment at 14.3. Forex traders can compare this to Eurozone Industrial Sentiment for April, reported at 7.9, and the Eurozone Services Sentiment at 13.5. Final Eurozone Consumer Confidence for May is predicted at -21.1. Forex traders can compare this to the previous Eurozone Consumer Confidence for May, reported at -21.1.
The Preliminary German CPI for May is predicted to increase 0.5% monthly and 7.6% annualized. Forex traders can compare this to the German CPI for April, which rose 0.8% monthly and 7.4% annualized. The EU Harmonized German CPI for May is predicted to increase 0.5% monthly and 8.0% annualized. Forex traders can compare this to the EU Harmonized German CPI for April, which increased 0.7% monthly and 7.8% annualized.
With the US session closed for a holiday today, traders should prepare for a busy European session with key inflation reports from Germany and Eurozone sentiment data. Last week marked a solid bear market rally, allowing equity markets a breather from heavy selling, but cryptocurrencies remained depressed. Traders should prepare for more volatility ahead, as central banks will tighten monetary policy further throughout 2022, recession risks remain high, and stagflationary pressures elevated.
The forecast for the EUR/CHF remains bullish as the Euro continues to recover from its sell-off after being rejected by its horizontal resistance area. Volatility may increase as bulls and bears fight for control after the Kijun-sen, and the Tenkan-sen flatlined, but the ascending Ichimoku Kinko Hyo Cloud supports a second push higher. The CCI recorded a higher low in extreme oversold territory and completed a breakout. Traders should monitor this technical indicator for a move above zero, confirming more upside ahead. Can bulls push the EUR/CHF back into its horizontal resistance 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 breakout above the 1.0235 to 1.0315 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.0280
- Take Profit Zone: 1.0455 – 1.0515
- Stop Loss Level: 1.0185
Should price action for the EUR/CHF breakdown below 1.0235, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.0185
- Take Profit Zone: 1.0015 – 1.0085
- Stop Loss Level: 1.0235
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