A strong tumble in the EURCHF leaves the pair just above key trendline and Fibonacci support. A continued hold of said level leaves our subsequent range trade in play, and we are prepared to hold it unless we see a daily close below 1.6698.
[B]Trading Tip –[/B] A strong tumble in the EURCHF leaves the pair just above key trendline and Fibonacci support. A continued hold of said level leaves our subsequent range trade in play, and we are prepared to hold it unless we see a daily close below 1.6698. Initial profit targets are seen at recent spike-highs of 1.6808, while continued upward momentum threatens to push the currency pair to fresh record-highs.
[B]Event Risk Euro Zone and Switzerland[/B]
[B]Euro Zone –[/B] The Euro-zone faces limited event risk during the coming week, as PMI for the manufacturing and services sectors are not expected to change drastically. The producer price index for the Euro-zone could spark mild price action, as inflation data is one of the key factors that the European Central Bank will be looking at during their next policy meeting which convenes next week. Traders should also watch for commentary from ECB monetary policy committee members, as signs of overt hawkishness may stir speculation of a rate hike in the near-term. Nevertheless, with risks to the downside for growth, the central bank is unlikely to tighten monetary policy on November 8th.
[B]Switzerland –[/B] If the Swiss franc were apt to respond to fundamental data, upcoming releases could prove to be an interesting week for the currency. However, this is not the case and the data on hand will likely only drive price action for a few minutes after the news hits the wires. The unemployment rate will likely continue to show that labor markets remain tight and should help to drive domestic demand in coming months.
[B]Data for November 2 – November 8[/B]
[B]Data for November 2 – November 8[/B]
[B]Date[/B]
[B]Euro Zone Economic Data[/B]
[B]Date[/B]
[B]Swiss Economic Data[/B]
Nov 6
Euro-Zone PMI Services (OCT F)
Nov 8
Unemployment Rate (OCT)
Nov 6
Euro-Zone PPI (SEP)
Nov 8
ECB Announces Interest Rates