The September Swiss recovered from moderate pressure this morning, and along with the Euro has been able to consolidate recent gains early this week. Swiss CPI during July was unchanged on a year-on-year basis, which has shown some forward progress from recent negative readings but will give the SNB little incentive to remove their current 1.20 floor rate with the Euro. The September Swiss may slide back towards the 107.80 level later during today’s trading session, but should hold its ground near the recent highs as long as global risk sentiment does not have any major setback later today.
Technical Outlook
CHF (SEP): The close below the 60-day moving average is an indication the longer-term trend has turned down. Stochastics turning bearish at overbought levels will tend to support lower prices if support levels are broken. The close under the 18-day moving average indicates the intermediate-term trend could be turning down. More selling pressure is likely given yesterday’s gap lower price action on the day session chart. The defensive setup, with the close under the 2nd swing support, could cause some early weakness.