Like the Euro, the Swiss might have become overdone at last week’s highs. While the Euro and Swissmight be seen as less involved in the Russian/Ukraine situation, the Swiss at 1.14 might be overvalued andvulnerable, if the Ukraine situation becomes significant enough to damage global economic conditions. Clearly thesafe haven vibe might provide some support to the Swiss, but global equities, the Swiss and the Pound at the endof last week might have been priced for economic perfection!
Technical Outlook: A new contract high was made on the rally. A bullish signal was given with an upsidecrossover of the daily stochastics. Studies are showing positive momentum but are now in overbought territory, sosome caution is warranted. The market’s close above the 9-day moving average suggests the short-term trendremains positive. The market has a bullish tilt coming into today’s trade with the close above the 2nd swingresistance. The next upside objective is 114.95. With a reading over 70, the 9-day RSI is approaching overboughtlevels. The next area of resistance is around 114.46 and 114.95, while 1st support hits today at 113.00 and belowthere at 112.02.