Like the Euro, the Swiss has rebounded sharply overnight and we think most of that lift is the result of alack of definitive interest in the Dollar and also because of the somewhat slack US scheduled data flow of late. Itis also possible that generally upbeat Euro zone economic readings have provided fundamental support for theSwiss this week. Near term support moves up to 1.1326 and there might be little in the way of resistance seenuntil the 1.14 level in the days ahead.
Technical Outlook: Declining momentum studies in the neutral zone will tend to reinforce lower priceaction. The market’s short-term trend is negative as the close remains below the 9-day moving average. It is aslightly negative indicator that the close was lower than the pivot swing number. The next downside objective isnow at 112.69. The next area of resistance is around 113.21 and 113.42, while 1st support hits today at 112.85and below there at 112.69.