Not to be outdone by the Euro, the Swiss has also spiked up in the wake of the US Fed message. Similarto the Euro, the Swiss has also discounted potentially restraining commentary from the Swiss central bank thatthey stand ready to act to head off deflation, if the ECB takes further action! In short, the technical trend is upeven if the fundamental news flows seems to be favoring the bear camp. Apparently the world was expecting theUS to be more upbeat toward their recovery and the world was also expecting the US Fed to be more hawkishand therefore the trade is probably unwinding Swiss shorts put in place into the June 5th peak.
Technical Outlook: The daily stochastics gave a bullish indicator with a crossover up. Daily stochastics areshowing positive momentum from oversold levels, which should reinforce a move higher if near term resistance istaken out. The market now above the 18-day moving average suggests the intermediate-term trend has turnedup. A positive setup occurred with the close over the 1st swing resistance. The near-term upside target is at112.12. Short-term indicators suggest buying pullbacks today. The next area of resistance is around 111.93 and112.12, while 1st support hits today at 111.39 and below there at 111.03.