Source: PaxForex Premium Analytics Portal, Fundamental Insight
The Swiss Trade Balance for October came in at CHF8.063B. Economists predicted a figure of CHF4.250B. Forex traders can compare this to the Swiss Trade Balance for September, reported at CHF4.942B.
The Eurozone Trade Balance for September is predicted at €27.0B. Forex traders can compare this to the Eurozone Trade Balance for August, reported at €31.5B.
The Eurozone CPI for October is predicted to increase by 0.3% monthly and 2.0% annualized. Forex traders can compare this to the Eurozone CPI for September, which decreased by 0.1% monthly and rose 2.0% annualized. The Eurozone Core CPI for October is predicted to accelerate by 0.2% monthly and by 2.7% annualized. Forex traders can compare this to the Eurozone Core CPI for September, which rose by 0.2% monthly and 2.7% annualized. The Eurozone Harmonized Core CPI for October is predicted to increase by 0.2% monthly and by 2.7% annualized. Forex traders can compare this to the Eurozone Harmonized Core CPI for September, which was flat at 0.0% monthly and expanded by 2.7% annualized.
The forecast for the EUR/CHF has turned cautiously bullish after this currency pair corrected into its horizontal support area. The Tenkan-sen and the Kijun-sen have flatlined, suggesting the absence of short-term selling pressure. The Senkou Span A and the Senkou Span B of the Ichimoku Kinko Hyo Cloud are also flat and narrow, confirming the lack of medium-term direction. Traders should monitor the CCI after recording a higher low in extreme oversold territory followed by a move above -100. This technical indicator has plenty of upside potential to lead price action higher. Can bulls regain control over the EUR/CHF and push this currency pair 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 0.9335 to 0.9370 zone, PaxForex recommends the following trade setup:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 0.9355
- Take Profit Zone: 0.9445 – 0.9465
- Stop Loss Level: 0.9320
Should price action for the EUR/CHF break down below 0.9335, PaxForex recommends the following trade setup:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 0.9320
- Take Profit Zone: 0.9280 – 0.9300
- Stop Loss Level: 0.9335
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