Euro-Swiss Franc Currency Pair Offers Solid Risk-Reward on Range Trade

Yesterday’s EURCHF recommendation on DailyFX+ has proven profitable in its first full day of trading, but we will protect ourselves from fresh downward risks on the pair on concerns that it may turn near current market levels. We do not believe that a short position is well-advised, however, as the medium-term trend remains towards fresh EURCHF record-highs. In the face of such momentum, we may look to add to our standing trade on a 240-minute bar close above the 1.6754 mark.

[B]Trading Tip – [/B][B]Yesterday’s EURCHF recommendation on DailyFX+ has proven profitable in its first full day of trading, but we will protect ourselves from fresh downward risks on the pair on concerns that it may turn near current market levels. We do not believe that a short position is well-advised, however, as the medium-term trend remains towards fresh EURCHF record-highs. In the face of such momentum, we may look to add to our standing trade on a 240-minute bar close above the 1.6754 mark. [/B]
[B]Event Risk Euro Zone and Switzerland[/B][B][/B]
[B]Euro Zone –[/B] Euro Zone economic event risk will pick up next week, with German Employment Change data and Retail Sales due on Tuesday and Monday, respectively. Traders should watch for any particularly surprising results in either measure. Otherwise, markets will be left to trade off of relatively non-market moving Euro Zone Consumer Confidence and CPI figures, while later PMI manufacturing data is likewise unlikely to force volatile moves in the EUR. It will be more important to watch for shifts in global risk sentiment—especially as it concerns the Dow Jones Industrial Average and other US stock indices.
[B]
Switzerland – [/B]Swiss economic event risk will likewise intensify in the days ahead, but the coast for range trades shall remain relatively clear until Tuesday’s KOF Leading Indicator and Wednesday’s Consumer Price Index data. Volatility in the Swiss Franc will likely depend on the performance of global risky asset classes, which are to potentially remain muted ahead of Wednesday’s key US Federal Reserve Interest Rate Announcement. We feel fairly confident holding a range trade despite a busy calendar, as we feel that risks remain to the topside for EURCHF price movement.

                                     [B]Data for October 29 – November 5[/B]
                                   [B][/B]
                                   [B]Data for October 29 – November 5[/B]
                                                     [B]Date[/B]
                                   [B]Euro Zone Economic Data[/B]
                                   [B][/B]
                                   [B]Date[/B]
                                   [B]Swiss Economic Data[/B]
                                                     Oct 30
                                   German   Unemployment Change (OCT)
                                   
                                   Oct 30
                                   UBS   Consumption Indicator (SEP)
                                                     Oct 31
                                   Euro Zone   Consumer Confidence (OCT)
                                   
                                   Oct 31
                                   KOF Swiss   Leading Indicator (OCT)
                                                     Oct 31
                                   Euro Zone   CPI Estimate (OCT)
                                   
                                   Nov 1
                                   SVME PMI   (OCT)
                                                     Oct 31
                                   German   Retail Sales (SEP)
                                   
                                   Nov 1
                                   Consumer   Price Index (OCT)
                                                     Nov 2
                                   Euro Zone   PMI Manufacturing