Source: PaxForex Premium Analytics Portal, Fundamental Insight
The Swiss CPI for October is predicted to increase 0.1% monthly and 1.1% annualized. Forex traders can compare this to the Swiss CPI for September, which increased 0.2% monthly and 0.9% annualized.
The Spanish Markit Manufacturing PMI for October is predicted at 58.1. Forex traders can compare this to the Spanish Markit Manufacturing PMI for September, reported at 58.1. The Italian Markit/ADACI Manufacturing PMI for October is predicted at 59.7. Forex traders can compare this to the Italian Markit/ADACI Manufacturing PMI for September, reported at 59.7.
The Final French Markit Manufacturing PMI for October is predicted at 53.5. Forex traders can compare this to the French Markit Manufacturing PMI for September, reported at 55.0. The Final German Markit/BME Manufacturing PMI for October is predicted at 58.2. Forex traders can compare this to the German Markit/BME Manufacturing PMI for September, reported at 58.4.
The Final Eurozone Markit Manufacturing PMI for October is predicted at 58.5. Forex traders can compare this to the Eurozone Markit Manufacturing PMI for September, reported at 58.6.
The forecast for the EUR/CHF remains bearish despite its massive sell-off, as the Swiss Franc capitalizes on its moderate safe-haven status amid rising inflationary pressures. A global economic slowdown adds to bearish momentum. The Tenkan-sen and the Kijun-sen resume their downtrend, and the Ichimoku Kinko Hyo Cloud is also descending. After the CCI reached extreme oversold territory, Forex traders should wait for a move above -100, from where a renewed correction is expected, before adding new short positions in this currency pair. Will bears maintain control over price and force the EUR/CHF into its horizontal support area and fresh multi-year lows? 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 1.0500 to 1.0600 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.00550
- Take Profit Zone: 1.0280 – 1.0310
- Stop Loss Level: 1.0660
Should price action for the EUR/CHF breakout above 1.0600, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.0660
- Take Profit Zone: 1.0765 – 1.0810
- Stop Loss Level: 1.0600
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