The September Swiss has fallen back below the 109.00 level early in today’s session, but for the most part has been able to hold onto most of its recent recovery rally thanks to quiet market conditions throughout Europe. The Swiss Franc may be vulnerable to further downside pressure late today with a positive Dollar reception to the FOMC meeting minutes, but should avoid any sizable pullback as long as EU risk concerns remain a backburner issue. The September Swiss may find support around the 108.64 level this morning, but along with the Euro should remain in close proximity to its recent highs as long as global risk sentiment does not deteriorate any further during this morning’s trading.
Technical Outlook
CHF (SEP): Studies are showing positive momentum but are now in overbought territory, so some caution is warranted. A positive signal for trend short-term was given on a close over the 9-bar moving average. Since the close was above the 2nd swing resistance number, the market’s posture is bullish and could see more upside follow-through early in the session. The near-term upside objective is at 110.13. The next area of resistance is around 109.67 and 110.13, while 1st support hits today at 108.44 and below there at 107.66.