While the Swiss remains near last week’s highs to start the new trading week, reports of a political flapwith the EU over an immigration issue might serve to limit the Swiss from a near term return to the 1.12 level. Others will suggest that the recent move above the 100 day moving average in the Swiss highlights a continuationof the uptrend pattern that began last May. Up trend channel support in the March Swiss climbs to 1.1064 by thisFriday.
Technical Outlook: The cross over and close above the 40-day moving average indicates the longer-termtrend has turned up. The daily stochastics have crossed over up which is a bullish indication. Positive momentumstudies in the neutral zone will tend to reinforce higher price action. The market’s short-term trend is positive onthe close above the 9-day moving average. With the close higher than the pivot swing number, the market is in aslightly bullish posture. The next upside objective is 112.23. The next area of resistance is around 111.82 and112.23, while 1st support hits today at 110.94 and below there at 110.46.