Source: PaxForex Premium Analytics Portal, Fundamental Insight
The final Italian CPI for August is predicted to rise 0.2% monthly and 1.1% annualized. Forex traders can compare this to the Italian CPI for July, which expanded 0.4% monthly and 1.3% annualized. The final Italian Harmonized CPI for August is predicted to decrease by 0.1% monthly and increase by 1.3% annualized. Forex traders can compare this to the Italian Harmonized CPI for July, which dropped by 0.9% monthly and accelerated by 1.6% annualized.
The Italian Trade Balance for July is predicted at €4.450B. Forex traders can compare this to the Italian Trade Balance for June, reported at €5.065B.
The Eurozone Trade Balance for July is predicted at €14.9B. Forex traders can compare this to the Eurozone Trade Balance for June, reported at €22.3B.
Swiss Producer & Import Prices for August increased by 0.2% monthly and decreased by 1.2% annualized. Forex traders can compare this to Swiss Producer & Import Prices for July, which were flat at 0.0% monthly and dropped by 1.7% annualized.
The forecast for the EUR/CHF remains cautiously bearish, with price action below its horizontal resistance area. After the Tenkan-sen completed a bearish crossover below the Kijun-sen, the Tenkan-sen continued to drift lower with the Kijun-sen flat. The Ichimoku Kinko Hyo Cloud adds downside pressure after the descending Senkou Span A widens the gap to the flat Senkou Span B. Traders should also monitor the CCI following its double breakout from extreme oversold territory and above zero, preceded by a positive divergence. This technical indicator began losing upside momentum, and a breakdown below zero could trigger the next leg lower with plenty of downside potential. Can bears regain control over the EUR/CHF and force price action into its horizontal support area and a fresh 2024 low? 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 0.9375 to 0.9405 zone, PaxForex recommends the following trade setup:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 0.9390
- Take Profit Zone: 0.9210 – 0.9285
- Stop Loss Level: 0.9445
Should price action for the EUR/CHF break out above 0.9405, PaxForex recommends the following trade setup:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 0.9445
- Take Profit Zone: 0.9490 – 0.9520
- Stop Loss Level: 0.9405
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