The September Swiss remains in a tailspin this morning, and may be heading for a new 3-week low later in today’s session. While today’s Swiss ZEW survey showed a sizable jump from last month, modest growth levels from the Euro zone has helped to drive the Swiss/Euro spread above the 1.24 level for the first time in 3 weeks. With a SNB official saying their currency was “still high”, the Swiss Franc is likely to remain under pressure throughout today’s session. The September Swiss may find near-term support around the 106.50 area, and will need to see a much stronger tone from outside markets later today in order to put the brakes on this current downdraft.
Technical Outlook
CHF (SEP): Stochastics trending lower at midrange will tend to reinforce a move lower especially if support levels are taken out. The close under the 18-day moving average indicates the intermediate-term trend could be turning down. The close below the 2nd swing support number puts the market on the defensive. The next downside objective is now at 106.31. The next area of resistance is around 107.77 and 108.44, while 1st support hits today at 106.71 and below there at 106.31.