We see a critical pivot point in the June Swiss up at 1.1239 and to start that level might be somewhatformidable resistance. However, US scheduled data is likely to set the tone for the day. In the event that US datais at or above expectations, we suspect that the Swiss is destined to slide back toward this week’s lows. In theshort term, the winner in the currency markets might be the currency with the economy that shows the leastamount of weakness.
Technical Outlook: Momentum studies are still bearish but are now at oversold levels and will tend tosupport reversal action if it occurs. The close below the 9-day moving average is a negative short-term indicatorfor trend. It is a slightly negative indicator that the close was under the swing pivot. The next downside target is111.23. The next area of resistance is around 112.76 and 113.16, while 1st support hits today at 111.80 andbelow there at 111.23.