As in the Euro, the Swiss was due for some technical short covering but one has to think that the ECB and the SNB are in favor of even lower exchange rates ahead. We would suggest that traders get short theSwiss, using a stop just above last Friday’s highs and looking for a downside objective below last week’s lows of1.0981.
Technical Outlook: Daily momentum studies are on the rise from low levels and should accelerate a movehigher on a push through the 1st swing resistance. The market’s short-term trend is negative as the close remainsbelow the 9-day moving average. A positive setup occurred with the close over the 1st swing resistance. The nextupside target is 111.01. The next area of resistance is around 110.71 and 111.01, while 1st support hits today at110.03 and below there at 109.66.