The September Swiss was unable to sustain yesterday’s massive recovery rally into today’s session, and is finding moderate pressure early in this morning’s trading. While recent Swiss economic data has generally show positive results, the Swiss Franc is likely to lose further ground to the Euro as long as Euro zone sentiment continues to show improvement. The September Swiss may find support around the 107.71 level later this morning, and is likely to remain on the defensive unless today’s US data disappoints the market.
Technical Outlook
CHF (SEP): Momentum studies trending lower at mid-range could accelerate a price break if support levels are broken. The market now above the 18-day moving average suggests the intermediate-term trend has turned up. The outside day up and close above the previous day’s high is a positive signal. There could be more upside follow through since the market closed above the 2nd swing resistance. The next downside target is 105.93. The next area of resistance is around 108.86 and 109.38, while 1st support hits today at 107.14 and below there at 105.93.