The Swiss has managed a consolidation zone recently but it hasn’t been able to exhibit much in the way of short covering and that suggests the bear camp maintains control. As in the Euro, the application of moresanctions is bearish to the Swiss and we suspect that the presence of positive US data later today will turn up thepressure again on the Swiss. Therefore traders should look to sell 10-30 tick rallies in the Swiss looking for morenew lows for the move next week into the feared FOMC meeting.
Technical Outlook: A bullish signal was given with an upside crossover of the daily stochastics. Risingfrom oversold levels, daily momentum studies would support higher prices, especially on a close aboveresistance. A negative signal for trend short-term was given on a close under the 9-bar moving average. It is amildly bullish indicator that the market closed over the pivot swing number. The near-term upside objective is at107.32. With a reading under 30, the 9-day RSI is approaching oversold levels. The next area of resistance isaround 107.09 and 107.32, while 1st support hits today at 106.65 and below there at 106.43.