Source: PaxForex Premium Analytics Portal, Fundamental Insight

The Swiss GDP for the second quarter decreased by 8.2% quarterly and by 9.3% annualized. Economists predicted a decrease of 8.6% and 9.6% annualized. Forex traders can compare this to the Swiss GDP for the first quarter, which decreased by 2.5% quarterly and by 0.7% annualized.

US Initial Jobless Claims for the week of August 22nd are predicted at 1,000K, and US Continuing Claims for the week of August 15th are predicted at 14,450K. Forex traders can compare this to US Initial Jobless Claims for the week of August 15th, which were reported at 1,106K, and to US Continuing Claims for the week of August 8th, which were reported at 14,844K.

The Advanced US GDP for the second quarter is predicted to decrease by 32.5% annualized. Forex traders can compare this to the first-quarter GDP, which decreased by 5.0% annualized. The GDP Price Index for the second quarter is predicted to decrease by 2.0% annualized. Forex traders can compare this to the first quarter GDP Price Index, which increased by 1.6% annualized. The Core PCE for the second quarter is predicted to decrease by 1.1% annualized. Forex traders can compare this to the first quarter Core PCE, which decreased by 1.1% annualized.

The forecast for the USD/CHF remains bearish as the economic risks from the Covid-19 pandemic remain. Today’s initial jobless claims will offer a catalyst to this currency pair, after last week’s disappointment. Price action is currently trending lower below its descending Tenkan-sen and Kijun-sen, with the Ichimoku Kinko Hyo Cloud sloping lower. Will bears mount another sell-off into its horizontal resistance area? Subscribe to the PaxForex Daily Fundamental Analysis and earn over 5,000 pips per month.

Should price action for the USD/CHF remain inside the or breakdown below the 0.9050 to 0.9120 zone the following trade set-up is recommended:

• Timeframe: D1
• Recommendation: Short Position
• Entry Level: Short Position @ 0.9085
• Take Profit Zone: 0.8740 – 0.8830
• Stop Loss Level: 0.9155

Should price action for the USD/CHF breakout above 0.9120 the following trade set-up is recommended:

• Timeframe: D1
• Recommendation: Long Position
• Entry Level: Long Position @ 0.9155
• Take Profit Zone: 0.9240 – 0.9260
• Stop Loss Level: 0.9120

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