Like the Euro, the Swiss is garnering some short covering action off a slight improvement in European economic conditions. Also like the Euro, the Swiss is clearly due some measure of technical short covering afterthe rather aggressive and consistent July declines. A normal retracement of the July slide in the September Swissmight provide a rally back to 1.1155.
Technical Outlook: Daily stochastics declining into oversold territory suggest the selling may be drying upsoon. The market’s short-term trend is negative as the close remains below the 9-day moving average. It is aslightly negative indicator that the close was lower than the pivot swing number. The next downside objective is110.67. The 9-day RSI under 30 indicates the market is approaching oversold levels. The next area of resistanceis around 110.95 and 111.04, while 1st support hits today at 110.77 and below there at 110.67.