Switzerland’s good GDP report yesterday failed to move the currency higher and in today’s session it is having a difficult time finding direction. Technically the Franc is hitting some minor support and could bounce from here if the US economic data is poor. The real ringer would be if the US Congress “ok’d” Syria intervention for President Obama. A flight to safety tilt could push the Franc much higher.
Technical Outlook
CHF (SEP): The close below the 60-day moving average is an indication the longer-term trend has turned down. The downside crossover of the 9 and 18 bar moving average is a negative signal. Momentum studies are still bearish but are now at oversold levels and will tend to support reversal action if it occurs. A negative signal for trend short-term was given on a close under the 9-bar moving average. The defensive setup, with the close under the 2nd swing support, could cause some early weakness. The next downside target is 106.09. The next area of resistance is around 107.23 and 107.73, while 1st support hits today at 106.41 and below there at 106.09.