Switzerland’s GDP released today came in up 0.5% which was better than expectations by two tenths of a percent but below last quarter’s 0.6% increase. The news was not enough to spark inflows to the Franc, as its safe haven status continues to wane. The two year anniversary of the Swiss National Bank’s successful cap on the Franc is just days away adding to overall bearish sentiment. Activity for the rest of today’s session will focus on the US economic data. If it is better than expectations then the Franc will sell off, if it is worse a slight rally will materialize.
Technical Outlook
CHF (SEP): Declining momentum studies in the neutral zone will tend to reinforce lower price action. The close below the 9-day moving average is a negative short-term indicator for trend. The market’s close below the pivot swing number is a mildly negative setup. The next downside target is now at 106.94. The next area of resistance is around 107.67 and 107.91, while 1st support hits today at 107.19 and below there at 106.94.