Not surprisingly the Swiss is rushing to factor in weak US scheduled data. However, the Swiss alsoseems to be benefiting from the noted improvement in European economic data and conditions in that region. TheSwiss also managed to discount negative inflation readings for February and reports of a huge central bankannual loss in the value of its gold reserves. In short, the Swiss is apparently looking forward to better economictimes ahead and it is also benefiting from the washout in the Dollar.
Technical Outlook: Momentum studies trending lower from overbought levels is a bearish indicator andwould tend to reinforce lower price action. The close above the 9-day moving average is a positive short-termindicator for trend. Since the close was above the 2nd swing resistance number, the market’s posture is bullishand could see more upside follow-through early in the session. The next downside objective is now at 112.14.The next area of resistance is around 114.24 and 114.59, while 1st support hits today at 113.02 and below thereat 112.14.