In spite of weak inflation and strong global risk sentiment, the Swiss Franc remains well supported and iswithin striking distance of reaching new high ground early this week. While SNB officials cannot be happy with theSwiss Franc’s strength against the Euro and the Dollar, there are unlikely to apply more than verbal pressure ontheir currency until the start of next year. The March Swiss may rise up towards the 113.22 level later today, andat this point is showing few signs that this current up move will be running out of steam anytime soon.
Technical Outlook: Momentum studies trending lower from overbought levels is a bearish indicator andwould tend to reinforce lower price action. A positive signal for trend short-term was given on a close over the 9-bar moving average. The market tilt is slightly negative with the close under the pivot. The next downside target is111.94. The next area of resistance is around 112.57 and 112.79, while 1st support hits today at 112.15 andbelow there at 111.94.