Source: PaxForex Premium Analytics Portal, Fundamental Insight
The Swiss KOF Leading Indicator for September is predicted at 90.5. Forex traders can compare this to the Swiss KOF Leading Indicator for August, reported at 91.1.
US Personal Income for August is predicted to increase by 0.4% monthly, and Personal Spending by 0.4% monthly. Forex traders can compare this to Personal Income for July, which rose by 0.2% monthly, and Personal Spending by 0.8% monthly. The PCE Deflator for August is predicted to expand by 0.5% monthly and 3.5% annualized. Forex traders can compare this to the PCE Deflator for July, which increased by 0.2% monthly and 3.2% annualized. The PCE Core Deflator for August is predicted to rise by 0.2% monthly and 3.9% annualized. Forex traders can compare this to the PCE Core Deflator for July, which increased by 0.2% monthly and 4.2% annualized.
US Preliminary Wholesale Inventories for August are predicted to rise by 0.1% monthly. Forex traders can compare this to US Wholesale Inventories for July, which dropped 0.2% monthly.
The US Chicago PMI for September is predicted at 47.6. Forex traders can compare this to the US Chicago PMI for August, reported at 48.7.
The final US Michigan Consumer Sentiment for September is predicted at 67.7. Forex traders can compare this to US Michigan Consumer Confidence for August, reported at 69.5. Final Current Conditions for September are predicted at 69.8, and Final Expectations are predicted at 66.3. Forex traders can compare this to Current Conditions for August, reported at 75.7, and Expectations, reported at 65.5. Final US Michigan Inflation Expectations for September are predicted at 3.1%, and Final US Michigan 5-year Inflation Expectations at 2.7%. Forex traders can compare this to Final US Michigan Inflation Expectations for August, reported at 3.5%, and Final US Michigan 5-Year Inflation Expectations at 3.0%.
The forecast for the USD/CHF remains bearish after this currency pair rallied 650+ pips. The flat Kijun-sen and Tenkan-sen confirm the lack of short-term upside momentum. Adding to signs of pending volatility is the widening Ichimoku Kinko Hyo Cloud. Traders should also monitor the CCI following its breakdown from extreme overbought territory. This technical indicator has plenty of downside potential, and a move below zero could increase selling pressure. Can bears overpower bulls, and regain control over the USD/CHF to 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 0.9110 to 0.9160 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 0.9135
- Take Profit Zone: 0.8930 – 0.8980
- Stop Loss Level: 0.9190
Should price action for the USD/CHF breakout above 0.9160, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 0.9190
- Take Profit Zone: 0.9250 – 0.9300
- Stop Loss Level: 0.9160
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