Source: PaxForex Premium Analytics Portal, Fundamental Insight
Swiss Producer & Import Prices for October decreased by 0.3% monthly and 1.8% annualized. Forex traders can compare this to Swiss Producer & Import Prices for September, which contracted by 0.1% monthly and 1.3% annualized.
US Retail Sales for October are predicted to increase 0.3% monthly and Core Retail Sales by 0.3% monthly. Forex traders can compare this to US Retail Sales for September, which rose by 0.4% monthly and Core Retail Sales by 0.5% monthly.
The US Import Price Index for October is predicted to decrease by 0.1% monthly, and the US Export Price Index by 0.1% monthly. Forex traders can compare this to the US Import Price Index for September, which contracted by 0.4% monthly, and to the US Export Price Index, which dropped by 0.7% monthly.
The US Empire Manufacturing Index for November is predicted at -0.30. Forex traders can compare this to the US Empire Manufacturing Index for October, reported at -11.90.
US Industrial Production for October is predicted to decrease by 0.3% monthly, and Manufacturing Production by 0.5% monthly. Forex traders can compare this to US Industrial Production for September, which contracted by 0.3% monthly, and Manufacturing Production, which decreased by 0.4% monthly. Capacity Utilization for October is predicted at 77.1%. Forex traders can compare this to Capacity Utilization for September, reported at 77.5%.
US Business Inventories for September are predicted to increase by 0.2% monthly, and Retail Inventories excluding Autos by 0.3%. Forex traders can compare this to US Business Inventories for August, which rose by 0.3% monthly, and Retail Inventories excluding Autos by 0.5% monthly.
The forecast for the USD/CHF turned cautiously bearish after this currency pair spiked into its horizontal resistance area with fading bullish momentum. The Kijun-sen and the Tenkan-sen have flatlined, confirming the lack of short-term upside pressure. The Senkou Span A and the Senkou Span B of the Ichimoku Kinko Hyo Cloud are drifting sideways, suggesting the absence of medium-term bullishness. Traders should also monitor the CCI in extreme overbought territory, where a negative divergence has formed. A breakdown below 100 could trigger a sell-off, and this technical indicator has plenty of downside potential. Can bears regain control over the USD/CHF and force price action 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 0.8860 to 0.8910 zone, PaxForex recommends the following trade setup:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 0.8875
- Take Profit Zone: 0.8615 – 0.8675
- Stop Loss Level: 0.8935
Should price action for the USD/CHF break out above 0.8910, PaxForex recommends the following trade setup:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 0.8935
- Take Profit Zone: 0.8980 – 0.9000
- Stop Loss Level: 0.8910
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