Like the Yen, the Swiss saw a bounce off US data yesterday and while the Swiss comes into the sessionmarkedly above the level where the US data was released yesterday, we suspect that action was mostly shortcovering ahead of today’s data. We have to give the edge to the bull camp, into the data today but we suspectthat a rally off the data will be reversed next week. Near term corrective targeting in the March Swiss is seen up at1.1117, which is the first retracement level from the December and January slide.
Technical Outlook: Momentum studies are declining, but have fallen to oversold levels. A negative signalfor trend short-term was given on a close under the 9-bar moving average. Market positioning is positive with theclose over the 1st swing resistance. The next downside target is now at 109.43. The next area of resistance isaround 110.66 and 110.88, while 1st support hits today at 109.94 and below there at 109.43.