Source: PaxForex Premium Analytics Portal, Fundamental Insight
The Swiss KOF Leading Indicator for July is predicted at 90.5. Forex traders can compare this to the Swiss KOF Leading Indicator for June, reported at 90.8.
The US Employment Cost Index for the second quarter is predicted to increase by 1.1% quarterly. Forex traders can compare this to the US Employment Cost Index for the first quarter, which rose 1.2% quarterly. US Employment Wages for the second quarter are predicted to expand by 1.2% quarterly and US Employment Benefits by 1.3% quarterly. Forex traders can compare this to US Employment Wages for the first quarter, which rose by 1.2% quarterly, and US Employment Benefits, which expanded by 1.2% quarterly.
US Personal Income for June is predicted to increase by 0.5% monthly and Personal Spending by 0.4% monthly. Forex traders can compare this to Personal Income for May, which rose by 0.4% monthly, and Personal Spending by 0.1% monthly. Real Personal Spending for June is predicted flat at 0.0% monthly. Forex traders can compare this to Real Personal Spending for May, which increased 0.5% monthly. The PCE Deflator for June is predicted to decrease by 0.1% monthly and increase by 3.1% annualized. Forex traders can compare this to the PCE Deflator for May, which increased by 0.1% monthly and 3.8% annualized. The PCE Core Deflator for June is predicted to rise by 0.2% monthly and 4.2% annualized. Forex traders can compare this to the PCE Core Deflator for May, which increased by 0.3% monthly and 4.6% annualized.
Preliminary US Michigan Consumer Sentiment for July is predicted at 65.5. Forex traders can compare this to US Michigan Consumer Confidence for June, reported at 64.4. Preliminary Current Conditions for July are expected at 70.4, and Preliminary Expectations are predicted at 61.8. Forex traders can compare this to Current Conditions for June, reported at 69.0, and Expectations, reported at 61.5.
The forecast for the USD/CHF remains bearish after this currency pair collapsed last week before entering a sideways trend. The descending Ichimoku Kinko Hyo Cloud applies ongoing downside pressure, but volatility could rise after the Kijun-sen and the Tenkan-sen flatlined. Traders should monitor the CCI after it recorded a lower low in extreme oversold territory before accelerating higher. A double breakout followed, and this technical indicator approaches extreme overbought conditions from where a reversal is likely. Can bears maintain selling pressure on the USD/CHF and force price action into its horizontal support area and a multi-year low? 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 0.8625 to 0.8785 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 0.8685
- Take Profit Zone: 0.8330 – 0.8400
- Stop Loss Level: 0.8820
Should price action for the USD/CHF breakout above 0.8785, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 0.8820
- Take Profit Zone: 0.8910 – 0.8980
- Stop Loss Level: 0.8785
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