Here are the key factors to keep in mind today for Euro trades:
- German Election Results: Yesterday’s German Election Results are described in German media as Merkel’s Nightmare Victory. Her ruling party, the CDU/CSU, lost 8.6% of voted but remained the largest party with 32.9% of the votes which is the worst election result for the party since 1949. The SPD lost 5.2% of votes, but remained the second largest party with 20.% of the votes. The SPD said it would go into opposition and not renew the Grand Coalition as before. The biggest winner was the AfD which gained 7.9% of voted to come in as the third largest party with 12.6% of the votes and a strong, loud opposition party. The FDP gained 6.0% to become the fourth largest party with 10.7% of votes and the Left Party added 0.6% of votes to become the fifth largest party and a total of 9.2% of votes while the smallest party, the Green Party, added 0.5% to 8.9% of all votes. The so called Jamaica coalition now remains the only coalition option for Chancellor Merkel, a combo of her CDU/CSU, the FDP and the Green, which has never been attempted on a national level before. Apart from that new elections would be another option.
- German IFO: The German IFO Business Climate Index for September was reported at 115.2. Economists predicted a figure of 116.0. Forex traders can compare this to the German IFO Business Climate Index for August which was reported at 115.9. The German IFO Current Assessment Index for September was reported at 123.6. Economists predicted a figure of 124.7. Forex traders can compare this to the German IFO Current Assessment Index for August which was reported at 124.6. The German IFO Expectations Index for September was reported at 107.4. Economists predicted a figure of 108.0. Forex traders can compare this to the German IFO Expectations Index for August which was reported at 107.9.
Here is the key factor to keep in mind today for Swiss Franc trades:
- Swiss Total Sight Deposits and Swiss Domestic Sight Deposits: Swiss Total Sight Deposits for the week of September 22nd were reported at CHF579.3B and Swiss Domestic Sight Deposits were reported at CHF476.2B. Forex traders can compare this to Swiss Total Sight Deposits for the week of September 15th which were reported at CHF579.0B and to Swiss Domestic Sight Deposits which were reported at CHF472.6B.
Should price action for the EURCHF remain inside the or breakdown below the 1.1550 to 1.1580 zone the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.1565
- Take Profit Zone: 1.1335 – 1.1360
- Stop Loss Level: 1.1620
Should price action for the EURCHF breakout above 1.1580 the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.1620
- Take Profit Zone: 1.1720 – 1.1750
- Stop Loss Level: 1.1550
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