Source: PaxForex Premium Analytics Portal, Fundamental Insight
The Swiss CPI for October is predicted to increase by 0.1% monthly and 1.7% annualized. Forex traders can compare this to the Swiss CPI for September, which decreased by 0.1% monthly and rose by 1.7% annualized.
The Spanish HCOB Manufacturing PMI for October is predicted at 47.0. Forex traders can compare this to the Spanish HCOB Manufacturing PMI for September, reported at 47.7.
The Italian HCOB Manufacturing PMI for October is predicted at 46.2. Forex traders can compare this to the Italian Manufacturing PMI for September, reported at 46.8.
The Final French HCOB Manufacturing PMI for October is predicted at 42.6. Forex traders can compare this to the French Manufacturing PMI for September, reported at 44.2.
The Final German HCOB Manufacturing PMI for October is predicted at 40.7. Forex traders can compare this to the German Manufacturing PMI for September, reported at 39.6.
The Final Eurozone HCOB Manufacturing PMI for October is predicted at 43.0. Forex traders can compare this to the Eurozone Manufacturing PMI for September, reported at 43.4.
The German Unemployment Change for October is predicted at 15.0K, and the German Unemployment Rate at 5.8%. Forex traders can compare this to the German Unemployment Change for September, reported at 10.0K, and the German Unemployment Rate, reported at 5.7%.
Many traders still digest yesterday’s Fed statement after the US central bank left interest rates unchanged as expected but left the door open for a future hike. Today’s Bank of England MPC meeting will get most of the attention, but European Central Bank member of the Executive Board, Philip Lane, will give a speech that could impact price action in all Euro crosses. His outlook on the slowing Eurozone economy, inflationary pressures, and monetary policy may provide insight into how the ECB plans to steer the Eurozone economy through recession threats and a stagflationary environment.
The forecast for the EUR/CHF turned bearish after this currency pair advanced into its descending Ichimoku Kinko Hyo Cloud, which continues to broaden with the Senkou Span A contracting faster than the Senkou Span B following the bearish crossover. Volatility could rise after the Kijun-sen flatlined, while the Tenkan-sen began to move higher. Traders should also monitor the CCI in extreme overbought territory amid a momentum loss. A breakdown below 100 could trigger the expected sell-off, and a move below zero could intensify the pending correction. Can bears overpower bull and regain control over the EUR/CHF to force price action 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 0.9565 to 0.9595 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 0.9580
- Take Profit Zone: 0.9450 – 0.9480
- Stop Loss Level: 0.9630
Should price action for the EUR/CHF breakout above 0.9595, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 0.9630
- Take Profit Zone: 0.9670 – 0.9695
- Stop Loss Level: 0.9595
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