Source: PaxForex Premium Analytics Portal, Fundamental Insight
The Swiss GDP for the third quarter is predicted to expand by 0.3% quarterly and 1.0% annualized. Forex traders can compare this to the Swiss GDP for the second quarter, which increased by 0.3% quarterly and 2.4% annualized.
The Preliminary Spanish CPI for November is predicted to increase by 7.4% annualized, and the Spanish EU Harmonized CPI to rise by 7.5% annualized. Forex traders can compare this to the Spanish CPI for October, which rose 7.3% annualized, and to the Spanish EU Harmonized CPI, which expanded by 7.3%.
Eurozone Economic Sentiment for November is predicted at 93.5. Forex traders can compare this to Eurozone Economic Sentiment for October, reported at 92.5. Eurozone Industrial Sentiment for November is predicted at -0.5, and Eurozone Services Sentiment at 2.0. Forex traders can compare this to Eurozone Industrial Sentiment for October, reported at -1.2, and Eurozone Services Sentiment at 1.8. Final Eurozone Consumer Confidence for November is predicted at -23.9. Forex traders can compare this to the previous Eurozone Consumer Confidence for November, reported at -23.9.
The Preliminary German CPI for November is predicted to decrease by 0.2% monthly and to surge by 10.4% annualized. Forex traders can compare this to the German CPI for October, which rose 0.9% monthly and 10.4% annualized. The EU Harmonized German CPI for November is predicted to increase by 0.1% monthly and 11.3% annualized. Forex traders can compare this to the EU Harmonized German CPI for October, which sky-rocketed 1.1% monthly and 11.6% annualized.
Traders will look for monetary policy clues after speeches from European Central Bank member Schnabel and Swiss National Bank Vice President Schlegel. Italian 5-year and 10-year bond auctions may provide further insight into the widening and uneven borrowing costs across the Eurozone.
The forecast for the EUR/CHF remains bearish after this currency pair was rejected by its horizontal resistance area, and price action began drifting lower. Short-term volatility could remain elevated with the Kijun-sen flat and the Tenkan-sen rising. It could result in a false bullish crossover before the downtrend resumes. The Ichimoku Kinko Hyo Cloud shows signs of a sideways trend, where the Senkou Span B flatlined, and the cloud could narrow, adding to downside pressures. Traders should monitor the CCI after it has recorded a lower low in extreme oversold territory before completing a breakout. It has moved above zero but lost momentum, and a decrease into negative territory could spark another sell-off. Can bear maintain selling pressure on the EUR/CHF and 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 0.9790 to 0.9860 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 0.9825
- Take Profit Zone: 0.9605 – 0.9645
- Stop Loss Level: 0.9890
Should price action for the EUR/CHF breakout above 0.9860, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 0.9890
- Take Profit Zone: 0.9955 – 1.0000
- Stop Loss Level: 0.9860
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