A short term bounce in the Swiss is expected but we are doubtful that the down trend pattern from thelate December high has been fully reversed. While we would like to sell a return to an old gap area on the chartsup at 1.1159 to 1.1199, we doubt that the Swiss will be able to recover that far on the charts. In fact, a recovery inUS equities or positive data from the US later this week, could quickly reverse the recent uptrend in the Swiss.Initial upside targets are seen at 1.1110 and that quasi double top could be an intermediate top!
Technical Outlook: The daily stochastics gave a bullish indicator with a crossover up. Daily stochasticsare showing positive momentum from oversold levels, which should reinforce a move higher if near termresistance is taken out. The market’s close below the 9-day moving average is an indication the short-term trendremains negative. The market’s close above the 2nd swing resistance number is a bullish indication. The nextupside target is 111.77. The next area of resistance is around 111.38 and 111.77, while 1st support hits today at110.30 and below there at 109.62.