The Swiss remains within striking distance of the recent highs but like the Euro there appears to be aloss of momentum. Given the magnitude of the February gains, there is certainly a fear of more corrective actionand given the fall off in volume since the middle of this month, we would suggest that longs consider bankingprofits, or implementing tight profit stops on longs. We wouldn’t play for a slide in the Swiss, but the trade mighthave signaled significant resistance is capable of holding the March Swiss below the 1.1301 spike high level.
Technical Outlook: Momentum studies are trending higher but have entered overbought levels. A positivesignal for trend short-term was given on a close over the 9-bar moving average. It is a mildly bullish indicator thatthe market closed over the pivot swing number. The next upside objective is 113.21. The next area of resistanceis around 112.97 and 113.21, while 1st support hits today at 112.50 and below there at 112.25.