While it is clear the trade was unable keep the Swiss down at its late July and early August lows last week, it is also unclear if the trade has the resolve to throw off the down trend pattern in place since early May, asthe Swiss is lower this morning in the wake of very positive Swiss retail sales figures and it is lower despite aslight reduction in anxiety from geopolitical issues. Given the lack of recovery in the Swiss this morning somemight suggest the Swiss won’t be able to throw off bearish vibes until the threat of more Russian economic turmoilis definitively past! Pushed into the Swiss we would be a seller of rallies using a stop at Friday’s highs.
Technical Outlook: The stochastics indicators are rising from oversold levels, which is bullish and shouldsupport higher prices. A positive signal for trend short-term was given on a close over the 9-bar moving average.A positive setup occurred with the close over the 1st swing resistance. The next upside target is 111.21. Shorttermindicators suggest buying dips today. The next area of resistance is around 110.87 and 111.21, while 1stsupport hits today at 110.07 and below there at 109.60.