Should price action for the USDCHF remain inside the 0.9250 to 0.9300 zone the following trade set-up is recommended:
- Timeframe: H1
- Recommendation: Short Position
- Entry Level: Short Position @ 0.9250
- Take Profit Zone: 0.8850 – 0.8900
- Stop Loss Level: 0.9375
Here is the key factor to keep in mind today for Swiss Franc trades:
Swiss Trade Balance: Economists expected a decrease in the trade surplus for December, but the contraction was much bigger than expected. The trade surplus shrank to 1.52 billion Swiss Francs in December. This is a sharp contraction in respect to November’s trade surplus of 3.80 billion Swiss Francs and compares to expectations for a trade surplus of 2.10 billion Swiss Francs.
Exports dropped 3.1% while imports rose 0.7%. This is a turnaround from November’s increase of 0.1% in exports and 3.0% contraction in imports. This was before the Swiss National Bank shocked forex markets and traders should expect much weaker figures going forward.
Here is the key factor to keep in mind today for US Dollar trades:
Factory Orders: Economists expect factory orders took another hit in December with a contraction of 2.4%. This could lead to a heavy sell-off in the US Dollar after November’s drop of 0.7%. Economic data out of the US has been unstable and the US Dollar could suffer the consequences of it.
Open your PaxForex Trading Account now and add this currency pair to your forex portfolio.
