With the trade anticipating further weakness in US data and European data currently assumed to be juststrong enough, the Swiss wins by default. In fact, fears of slowing Chinese activity off their latest tightening movehas aggressively undermined the Pound and Yen and that in turn has given the Swiss an added lift. As suggestedin the Euro, we would not fight the established up trend in the Swiss but one has to think that the SNB will beginto increase its dialogue as the Swiss approaches the 1.13 level.
Technical Outlook: Momentum studies are trending higher but have entered overbought levels. Themarket’s short-term trend is positive on the close above the 9-day moving average. With the close higher than thepivot swing number, the market is in a slightly bullish posture. The near-term upside target is at 112.61. The nextarea of resistance is around 112.40 and 112.61, while 1st support hits today at 111.92 and below there at 111.66.