USDCHF Fundamental Analysis – July 22nd 2019

Forex traders will get a light economic calendar on the first trading day of this week. Given the sell-off at the close of the US equity trading session on Friday and this morning’s risk-off session in Asia, safe haven assets such as the Swiss Franc are expected to outperform. Conflicting messages about a US interest rate cut by FOMC members has added uncertainty about the US Dollar. The USDCHF has been under selling pressure which only increased after this currency pair broke below parity. How long will this downtrend last? Follow the PaxForex Daily Fundamental Analysis and earn over 500 pips per month with the help of our expert analysts.

Here is the key factor to keep in mind today for US Dollar trades:

• US Chicago Fed National Activity Index: The US Chicago Fed National Activity Index for June is predicted at 0.10. Forex traders can compare this to the US Chicago Fed National Activity Index for May which was reported at -0.05.

As the global economy continues to slow down sharply, the Swiss economy has provided a pocket of strength which added to the bullish sentiment in the Swiss Franc. The rise in tension in the Persian Gulf are also adding to the downtrend in the USDCHF which is likely to extend as forex traders are awaiting the next Fed meeting and as second-quarter earnings season will dominate over the next few weeks. Is now the right time to seek long trading opportunities in this currency pair or will the sell-off last? This morning’s fundamental analysis will explore scenarios in both directions.

Here are the key factors to keep in mind today for Swiss Franc trades:

• Swiss Money Supply M3: Swiss Money Supply M3 for June is predicted to increase by 3.5% annualized. Forex traders can compare this to Swiss Money Supply M3 for May which increased by 3.4% annualized.
• Swiss Total Sight Deposits and Swiss Domestic Sight Deposits: Swiss Total Sight Deposits for the week of July 19th are predicted at CHF577.6B and Swiss Domestic Sight Deposits are predicted reported at CHF478.9B. Forex traders can compare this to Swiss Total Sight Deposits for the week of July 12th which were reported at CHF579.0B and to Swiss Domestic Sight Deposits which were reported at CHF480.1B.

Should price action for the USDCHF remain inside the or breakdown below the 0.9780 to 0.9845 zone the following trade set-up is recommended:

• Timeframe: D1
• Recommendation: Short Position
• Entry Level: Short Position @ 0.9835
• Take Profit Zone: 0.9540 – 0.9600
• Stop Loss Level: 0.9890

Should price action for the USDCHF breakout above 0.9840 the following trade set-up is recommended:

• Timeframe: D1
• Recommendation: Long Position
• Entry Level: Long Position @ 0.9865
• Take Profit Zone: 0.9965 – 1.0010
• Stop Loss Level: 0.9815

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