While the Swiss continues to hold above recent consolidation low support on its charts and the currency seems to have a slight upward track we think it lacks the fundamentals to justify consistent upward action on its charts. Suggesting that the Swiss is poised to rally would seem to suggest that the Dollar is set to top or that the Euro is set to bottom. We see no change in fundamentals and while the bulls might have an initial edge today, the failure to hold above 1.1366 ahead could yank the rug out from under the bull camp.
Technical Outlook: Momentum studies are rising from mid-range, which could accelerate a move higher if resistance levels are penetrated. The market’s short-term trend is positive on the close above the 9-day moving average. The market setup is somewhat negative with the close under the 1st swing support. The near-term upside objective is at 118.80. The market is approaching overbought levels with an RSI over 70. The next area of resistance is around 116.40 and 118.80, while 1st support hits today at 112.56 and below there at 111.13.