Negative chart action overnight coincides with a recovery in the Dollar and positive UK data flows.Clearly the flight to quality run up in the Swiss was partially the result of the emerging markets uncertainty andtherefore a slight abatement of that situation has sent the March Swiss reeling back down on the charts. Nearterm downside targeting in the March Swiss is seen at 1.1062 but in the event the US Fed tapers on Wednesdaythat could send the March Swiss down to 1.0967.
Technical Outlook: Momentum studies are rising from mid-range, which could accelerate a move higher ifresistance levels are penetrated. The market’s short-term trend is positive on the close above the 9-day movingaverage. It is a slightly negative indicator that the close was under the swing pivot. The next upside target is112.24. The next area of resistance is around 111.84 and 112.24, while 1st support hits today at 111.20 andbelow there at 110.95.