Not surprisingly the Swiss is benefiting from the ongoing pattern of weakness in the Dollar, but the Swissis also benefiting because of a hot housing market and generally positive economic expectations. However, thetrade in the Swiss might expect to see commentary from the SNB regarding the exchange rate in the event thatthe Swiss rises above the December highs. However, the last time the SNB intervened was following the riseabove the 1.20 level on the charts and therefore central bank dialogue is unlikely to halt the run in the Swiss in theshort term.
Technical Outlook: e major trend could be turning up with the close back above the 40-day movingaverage. Studies are showing positive momentum but are now in overbought territory, so some caution iswarranted. A positive signal for trend short-term was given on a close over the 9-bar moving average. Themarket’s close above the 2nd swing resistance number is a bullish indication. The next upside objective is 112.91.The next area of resistance is around 112.54 and 112.91, while 1st support hits today at 111.40 and below thereat 110.64.