Source: PaxForex Premium Analytics Portal, Fundamental Insight
The Swiss ZEW Expectations Survey for November was reported at 30.0. Forex traders can compare this to the Swiss ZEW Expectations Survey for October, reported at 2.3. US Initial Jobless Claims for the week of November 21st are predicted at 730K, and US Continuing Claims for the week of November 14th are predicted at 6,020K. Forex traders can compare this to US Initial Jobless Claims for the week of November 14th, which were reported at 742K, and to US Continuing Claims for the week of November 7th, which were reported at 6,372K.US Preliminary Durable Goods Orders for October are predicted to increase by 0.9% monthly, and Durables Excluding Transportation are predicted to increase by 0.5% monthly. Forex traders can compare this to US Durable Goods Orders for September, which increased by 1.9% monthly, and to Durables Excluding Transportation, which increased by 0.8% monthly.
The Advanced US GDP for the third quarter is predicted to increase by 33.2% annualized. Forex traders can compare this to the second-quarter GDP, which decreased by 31.4% annualized. The GDP Price Index for the third quarter is predicted to increase by 3.7% annualized. Forex traders can compare this to the second quarter GDP Price Index, which decreased by 2.1% annualized. The Core PCE for the third quarter is predicted to increase by 3.5% annualized. Forex traders can compare this to the second quarter Core PCE, which decreased by 0.8% annualized.
US Personal Income for October is predicted flat at 0.0% monthly, and Personal Spending is predicted to increase by 0.4% monthly. Forex traders can compare this to Personal Income for September, which increased by 0.9% monthly, and to Personal Spending, which increased by 1.4% monthly. The PCE Core Deflator for October is predicted flat at 0.0% monthly and to increase by 1.4% annualized. Forex traders can compare this to the PCE Core Deflator for September, which increased by 0.2% monthly and by 1.5% annualized.
Final US Michigan Consumer Sentiment for November is predicted at 77.0. Forex traders can compare this to US Michigan Consumer Confidence for October, reported at 81.8. Final Current Conditions for November are predicted at 85.8, and Final Expectations are predicted at 71.3. Forex traders can compare this to Current Conditions for October, which were reported at 85.9, and to Expectations, which were reported at 79.2. US New Home Sales for October are predicted to increase by 1.5% monthly to 970K new homes. Forex traders can compare this to US New Home Sales for September, which decreased by 3.5% monthly to 959K new homes.
The forecast for the USD/CHF remains bearish as the Covid-19 pandemic threatens economies like Germany and France with a recession, which will have an impact on US exports. The Swiss Franc may receive more safe-haven inflows as 2020 winds down. After price action moved below its Ichimoku Kinko Hyo Cloud, now slowing lower, the Tenkan-sen started to trend down. It adds to bearish momentum, and the CCI has more downside potential after turning negative. Will bears be able to force the USD/CHF into its next 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 0.9095 to 0.9130 zone the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 0.9115
- Take Profit Zone: 0.8700 – 0.8800
- Stop Loss Level: 0.9170
Should price action for the USD/CHF breakout above 0.9130 the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 0.9170
- Take Profit Zone: 0.9240 – 0.9295
- Stop Loss Level: 0.9130
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