As long as there is not a clear escalation of Russian/west tensions the Swiss might be able to claw outsome minor gains. However, betting on the long side of the Swiss at current levels is a bet of an end to theEastern Ukraine land battle. It does appear as if Ukrainian national forces are pushing back the rebels and withthe Russian supply effort from last week deterred, the push of covert aid insertion is probably on the rise. Oneshould not rule out a quick decline back down to levels below 1.10 in the coming sessions but that will requireprovable Russian aggression of some sort.
Technical Outlook: Momentum studies are trending higher from mid-range, which should support a movehigher if resistance levels are penetrated. The cross over and close above the 18-day moving average indicatesthe intermediate-term trend has turned up. The market setup is supportive for early gains with the close over the1st swing resistance. The near-term upside target is at 111.23. The next area of resistance is around 111.06 and111.23, while 1st support hits today at 110.50 and below there at 110.10.