The September Swiss was able to recover from early pressure to grinds its way into positive territory, although it continues to lose further ground to the Euro. An improving tone from outside markets will clearly help, but the Swiss Franc will likely require a full-scale “risk on” mood throughout global markets in order to rechallenge the early August highs. The September Swiss may rise up towards the 108.28 level later today, and should maintain upside momentum in spite of the subdued trading conditions early this week.
Technical Outlook
CHF (SEP): Declining momentum studies in the neutral zone will tend to reinforce lower price action. The market’s short-term trend is negative as the close remains below the 9-day moving average. The market could take on a defensive posture with the daily closing price reversal down. With the close higher than the pivot swing number, the market is in a slightly bullish posture. The next downside target is now at 107.22. The next area of resistance is around 108.42 and 108.89, while 1st support hits today at 107.58 and below there at 107.22.