While the Swiss is left flat footed by the rejection of a $25 minimum wage referendum, it is catching anindirect lift from a recovery in the Euro and renewed weakness in the US Dollar. With little US scheduled data tobe released until Thursday, the Swiss might be able to respect recent consolidation support on the charts around1.1208. While we think the Swiss has found some support on the charts, we don’t see a distinct fundamentaljustification for a Swiss rally ahead.
Technical Outlook: Momentum studies are still bearish but are now at oversold levels and will tend tosupport reversal action if it occurs. A negative signal for trend short-term was given on a close under the 9-barmoving average. The market’s close below the pivot swing number is a mildly negative setup. The next downsidetarget is now at 111.82. With a reading under 30, the 9-day RSI is approaching oversold levels. The next area ofresistance is around 112.25 and 112.49, while 1st support hits today at 111.91 and below there at 111.82.