Source: PaxForex Premium Analytics Portal, Fundamental Insight
The Swiss National Bank Sight Deposit Interest Rate is predicted at 1.75%, up 25 basis points. Forex traders can compare this to the previous Swiss National Bank Sight Deposit Interest Rate, reported at 1.50% after the SNB raised it by 50 basis points. It followed previous interest rate increases of 50 basis points, 75 basis points, and 50 basis points. Switzerland maintains the second-lowest interest rates, trailing only Japan and its negative rates, in G10 economies. Traders should carefully evaluate comments by the SNB concerning future monetary policy decisions.
The US Chicago Fed National Activity Index for May is predicted at 0.00. Forex traders can compare this to the US Chicago Fed National Activity Index for April, reported at 0.07.
US Initial Jobless Claims for the week of June 17th are predicted at 260K, and US Continuing Claims for the week of June 10th are at 1,782K. Forex traders can compare this to US Initial Jobless Claims for the week of June 10th, reported at 262K, and US Continuing Claims for the week of June 3rd at 1,775K.
The US Current Account Balance for the first quarter is predicted at -$216.9B. Forex traders can compare this to the US Current Account Balance for the fourth quarter, reported at -$206.8B.
US Existing Home Sales for May are predicted at 4.25M. Forex traders can compare this to US Existing Home Sales for April, reported at 4.28M.
The US Leading Index for May is predicted to drop 0.8% monthly. Forex traders can compare this to the US Leading Index for April, which contracted 0.6% monthly.
The US Kansas City Fed Manufacturing Activity Index for June is predicted at -11. Forex traders can compare this to the US Kansas City Fed Manufacturing Activity Index for May, reported at -2. The US Kansas City Fed Composite Index for June is predicted at -5. Forex traders can compare this to the US Kansas City Fed Composite Index for May, reported at -1.
US Natural Gas Inventories for the week ending June 16th are predicted at 88B cubic feet. Traders can compare this to US Natural Gas Inventories for the week ending June 9th, reported at 84B cubic feet.
US Crude Oil Inventories Change for the week ending June 16th are predicted at 1.873M. Traders can compare this to US Crude Oil Inventories Change for the week ending June 9th, reported at 7.919M. US Gasoline Inventories Change for the week ending June 16th are predicted at 1.091M, and US Distillate Stocks Change at -0.001M. Traders can compare this to US Gasoline Inventories Change for the week ending June 9th, reported at 2.108M, and US Distillate Stocks Change at 2.123M.
The forecast for the USD/CHF remains bearish, driven lower by its downward-shifting Ichimoku Kinko Hyo Cloud. Volatility could rise following a potential false bullish crossover of the Senkou Span A above the Senkou Span B and the sideways drifting Kijun-sen and Tenkan-sen. Traders should also monitor the CCI after this technical indicator reversed a false breakout from extreme oversold territory with more downside potential ahead. Can bears continue to pressure the USD/CHF toward its next horizontal support area and a fresh 2023 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 0.8900 to 0.8950 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 0.8930
- Take Profit Zone: 0.8755 – 0.8790
- Stop Loss Level: 0.9000
Should price action for the USD/CHF breakout above 0.8950, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 0.9000
- Take Profit Zone: 0.9060 – 0.9110
- Stop Loss Level: 0.8950
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