Source: PaxForex Premium Analytics Portal, Fundamental Insight
The Swiss Manufacturing PMI for August is predicted at 67.3. Forex traders can compare this to the Swiss Manufacturing PMI for July, reported at 71.1.
The US ADP Employment Change for August is predicted at 613K. Forex traders can compare this to the US ADP Employment Change for July, reported at 330K. US Construction Spending for July is predicted to increase 0.2% monthly. Forex traders can compare this to US Construction Spending for June, which increased 0.1% monthly. The US ISM Manufacturing Index for August is predicted at 58.6. Forex traders can compare this to the US ISM Manufacturing Index for July, reported at 59.5. ISM Prices Paid for August are predicted at 83.8. Forex traders can compare this to ISM Prices Paid for July, reported at 85.7.
The forecast for the USD/CHF turned bearish after this currency pair advanced into heavy resistance. Volatility may increase as bulls and bears struggle for control, but the Kijun-sen turned sideways. With the Tenkan-sen descending, a crossover is expected to add to selling pressure. The Ichimoku Kinko Hyo Cloud maintains a sideways trend, but rising bearish developments could force a downward trend. Traders should wait for the CCI to enter extreme overbought territory before selling this currency pair. Can bears wrestle control from the bull 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 0.9155 to 0.9210 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 0.9180
- Take Profit Zone: 0.8925 – 0.8960
- Stop Loss Level: 0.9240
Should price action for the USD/CHF breakout above 0.9210, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 0.9240
- Take Profit Zone: 0.9330– 0.9375
- Stop Loss Level: 0.9210
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