While finding moderate pressure this morning, the March Swiss has seen a short-covering bounce this week as it has also benefited from ideas that the US Fed will have to walk softly. However, once the Fed situation drains from the headlines, the recession in Europe lives on with the added uncertainty of a looming financial/currency disaster in Russia. If Russia runs into the ditch, currencies like the March Swiss are certain to feel some downward drag.
Technical Outlook: The cross over and close above the 40-day moving average is an indication the longer-term trend has turned positive. Positive momentum studies in the neutral zone will tend to reinforce higher price action. The market’s short-term trend is positive on the close above the 9-day moving average. The market’s close above the 2nd swing resistance number is a bullish indication. The near-term upside target is at 105.39. The next area of resistance is around 104.88 and 105.39, while 1st support hits today at 103.76 and below there
at 103.15.