The Swiss was unable to return to its recent highs and that would seem to confirm a continuation of adown trend that has basically been in place since early May. Down trend channel resistance is seen at 1.1153and given some positive US scheduled data ahead we suspect that the September Swiss will see a freshdownside breakout at some point this week. Remain bearish toward the Swiss as long as it remains below downtrend channel resistance at 1.1211. That down trend channel resistance line falls to 1.1198 by Wednesday.
Technical Outlook: Daily stochastics declining into oversold territory suggest the selling may be drying upsoon. A negative signal for trend short-term was given on a close under the 9-bar moving average. It is a slightlynegative indicator that the close was lower than the pivot swing number. The next downside target is now at110.92. The next area of resistance is around 111.57 and 111.76, while 1st support hits today at 111.15 andbelow there at 110.92.