Source: PaxForex Premium Analytics Portal, Fundamental Insight
Swiss CPI for May is predicted to increase 0.3% monthly and 2.6% annualized. Forex traders can compare this to the Swiss CPI for April, which rose 0.4% monthly and 2.5% annualized.
The US ADP Employment Change for May is predicted at 300K. Forex traders can compare this to the US ADP Employment Change for April, reported at 247K. US Initial Jobless Claims for the week of May 28th are predicted at 210K, and US Continuing Claims for the week of May 21st are predicted at 1,325K. Forex traders can compare this to US Initial Jobless Claims for the week of May 21st, reported at 210K, and to US Continuing Claims for the week of May 14th, reported at 1,346K.
Final US Non-Farm Productivity for the first quarter is predicted to plunge 7.5% quarterly, and Unit Labor Costs to surge 11.5% quarterly. Forex traders can compare this to US Non-Farm Productivity for the fourth quarter, which rose 6.3% quarterly, and to Unit Labor Costs, which increased 0.9% quarterly.
US Factory Orders for April are predicted to increase 0.7% monthly. Forex traders can compare this to US Factory Orders for March, which rose 1.8% monthly.
US Natural Gas Inventories for the week ending May 27th are predicted at 86B cubic feet. Traders can compare this to US Natural Gas Inventories for the week ending May 20th, reported at 80B cubic feet.
US Crude Oil Inventories for the week ending May 27th are predicted at -1.350M. Traders can compare this to US Crude Oil Inventories for the week ending May 20th, reported at -1.019M. US Gasoline Inventories for the week ending May 27th are predicted at 0.533M and US Distillate Stocks at 0.990M. Traders can compare this to US Gasoline Inventories for the week ending May 20th, reported at -0.482M, and US Distillate Stocks at 1.657M.
The forecast for the USD/CHF remains bearish after the Ichimoku ended its uptrend and turned sideways. Adding to the negative outlook for price action is the descending Tenkan-sen, especially following its bearish crossover below the flat Kijun-sen, expected to move lower soon. After a negative divergence in extreme overbought territory, the CCI collapsed into extreme oversold conditions. Traders should monitor the current breakout, expected to keep this technical indicator below zero, from where more downside is likely. Can bears remain in control of price action and pressure the USD/CHF into its horizontal support 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 0.9580 to 0.9670 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 0.9630
- Take Profit Zone: 0.9275 – 0.9350
- Stop Loss Level: 0.9750
Should price action for the USD/CHF breakout above 0.9670, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 0.9750
- Take Profit Zone: 0.9800 – 0.9870
- Stop Loss Level: 0.9670
Open your PaxForex Trading Account now and add this currency pair to your forex portfolio.
