Like the Euro, the Swiss has come off a compacted short term overbought condition and it is vulnerableto classic retracement action. Some might suggest that the Swiss was priced for macroeconomic perfection at itsrecent highs and some of that premium in the Swiss exchange rate was the result of overly negative economicviews toward the US. With the US stringing together a chain of positive economic readings, we can’t rule out aretest of 1.1344 and perhaps even 1.1333 in the event that US data continues to improve.
Technical Outlook: Daily stochastics have risen into overbought territory which will tend to supportreversal action if it occurs. A positive signal for trend short-term was given on a close over the 9-bar movingaverage. It is a mildly bullish indicator that the market closed over the pivot swing number. The next upside targetis 114.34. The next area of resistance is around 114.14 and 114.34, while 1st support hits today at 113.74 andbelow there at 113.53.