The Swiss is showing early signs of weakness on the charts and that is not surprising considering the slack Euro zone data released overnight and the hope for hawkish talk from the US Fed later today. However, likethe Yen the magnitude of the downside potential in the Swiss is probably limited, as the trade has little reason topush the Swiss out of a two month old coiling pattern. Near term downside targeting is seen down at 1.1169.
Technical Outlook: Stochastics trending lower at midrange will tend to reinforce a move lower especially ifsupport levels are taken out. The market’s close below the 9-day moving average is an indication the short-termtrend remains negative. With the close higher than the pivot swing number, the market is in a slightly bullishposture. The next downside objective is 111.76. The next area of resistance is around 112.39 and 112.64, while1st support hits today at 111.95 and below there at 111.76.