The Swiss was able to benefit from this week’s flare up of risk-off sentiment but it would appear that the uncertainty surrounding the Spanish bank in question has moderated. However, it is also possible that the Swissthis week garnered some lift from disappointing European and US data and therefore the path of least resistancemight remain up in the Swiss. However, while we think the risk of being long is limited we also think that thereward of being long the Swiss is limited.
Technical Outlook: Stochastics trending lower at midrange will tend to reinforce a move lower especially ifsupport levels are taken out. The close below the 9-day moving average is a negative short-term indicator fortrend. The daily closing price reversal down is a negative indicator for prices. The close below the 1st swingsupport could weigh on the market. The next downside target is 111.77. The next area of resistance is around112.31 and 112.54, while 1st support hits today at 111.93 and below there at 111.77.