Favorable Swiss retail sales has provided the Swiss with some internal support and with the rest of thecurrency markets showing indecision, the Swiss looks to win by default. Some traders suggest that the Swiss isset to benefit from economic uncertainty in China and the commodity currencies. Others suggest that lingeringuncertainty toward the Ukrainian situation leaves the Euro and Swiss in vogue relative to the Pound and theDollar as those countries are more likely to be the counterweight to Russia. The Swiss is overbought technicallybut it seems to have retained a bullish fundamental edge.
Technical Outlook: The rally brought the market to a new contract high. The crossover up in the dailystochastics is a bullish signal. Daily stochastics have risen into overbought territory which will tend to supportreversal action if it occurs. A positive signal for trend short-term was given on a close over the 9-bar movingaverage. It is a mildly bullish indicator that the market closed over the pivot swing number. The next upside targetis 114.64. The next area of resistance is around 114.31 and 114.64, while 1st support hits today at 113.55 andbelow there at 113.11.