The Swiss Franc’s rally was cut short yesterday with a fairly broad based sell off. The lack of Swiss economic data this week is forcing market players to once again trade the Swiss almost exclusively as a safe haven currency. With the decreasing threat of a Syria military intervention by the US and a general feeling of less uncertainty, the Swiss Franc is experiencing outflows. Early morning trading has been Franc positive, but that could change later in the session as players feel more confident about global economic growth and cautious sentiment fades.
Technical Outlook
CHF (SEP): The close under the 60-day moving average indicates the longer-term trend could be turning down. Momentum studies are trending higher from mid-range, which should support a move higher if resistance levels are penetrated. The market’s short-term trend is negative as the close remains below the 9-day moving average. The market’s close below the pivot swing number is a mildly negative setup. The next upside objective is 107.59. The next area of resistance is around 107.28 and 107.59, while 1st support hits today at 106.72 and below there at 106.46.